Oceaneering International, Inc. announced a new deal to purchase C&C Technologies for $230 million to expand its offshore oil and natural gas drilling services, according to a press release. The acquisition is currently scheduled to close in April 2015, subject to customary conditions.
C&C Technologies provides ocean-bottom mapping services for deepwater areas. The company uses autonomous underwater vehicles to provide its clients with marine construction surveys and offers satellite-positioning services for construction vessels and drilling rigs. Oceaneering is an offshore oil equipment supplier and will use C&C Technologies' equipment and capabilities to expand its products and services, and expects the transaction to bring with it many new business opportunities.
"Benefits we anticipate include: increased use of our remotely operated vehicles and vessels to support survey services; enhancement of our ability to secure subsea asset integrity work on pipelines, including x-ray and ultrasonic inspections, which could pull through additional demand for tooling and pipeline repair systems; and increased demand for our video and data solutions service," said Oceaneering President and CEO M. Kevin McEvoy.
Good news for workers
Oceaneering will also keep on more than 550 C&C Technologies employees and has no layoffs planned, company spokesperson Jack Jurkoshek told FuelFix. President and Cofounder of C&C Technologies Thomas Chance will also remain at the company for at least a year following close and will help assimilate C&C Technologies' business into Oceaneering.
New financial outlook
Following the transaction, Oceaneering anticipates the acquired business to generate between $20 million and $30 million of EBITDA prior to accounting for integration costs, according to the release. The company will issue its 2014 year-end earnings on Feb. 11 and at that time, will update its 2015 outlook.