Fugro to Divest Seabed Geosolutions
Fugro has reached a binding agreement with PXGEO Seismic Services Limited to sell certain assets and the related business of its non-core subsidiary Seabed Geosolutions for USD 16 million (approximately EUR 14 million) in cash. The transaction is expected to be completed mid-2021.
The divestment includes Seabed’s ocean bottom node inventory, handling equipment, related technology and order backlog. In addition, a significant number of personnel responsible for delivering the Seabed Geosolutions’ business will transition to PXGEO; the exact number will depend on a further analysis of the needs of the business. The cash proceeds are in line with the book value of the divested business and are expected to cover anticipated restructuring costs and other cash liabilities related to wind down of the remaining parts of the Seabed Geosolutions’ organisation. The negative EBIT impact, related to the restructuring and associated costs, is estimated at EUR 8 to 10 million. Fugro will retain the Hugin Explorer vessel and potential liabilities and claims related to ongoing litigation, in line with previous disclosures.
Completion of the divestment is expected for mid-2021, subject to customary closing conditions, with proceeds delivered to Fugro at that time.