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UK-based subsea cabling specialist Global Marine Group (GMG) has been acquired by Singapore’s Keppel Infrastructure Fund and a co-investor.
The transaction, led by Keppel’s private investment vehicle will see 100% of GMG taken from J.F. Lehman & Company (JFLCO) for an undisclosed sum. JFLCO took over the business in 2020 for around $250m.
GMG operates a fleet of six vessels providing maintenance and installation services for the global subsea fibre optic cable network.
Describing the reasoning behind the acquisition, Keppel said that based on increasing worldwide demand for connectivity and the limited supply of specialised vessels, GMG would be well-positioned to continue its fleet utilisation of nearly 100% in the years to come.
Christina Tan, CEO of fund management and chief investment officer at Keppel commented, “It is a rare and unique opportunity to acquire a world-leading provider of subsea cable maintenance and installation services. This investment builds on Keppel’s digital infrastructure strategy which includes the Bifrost Cable System, and now, GMG. With a substantial proportion of GMG’s business secured by long-term contracts with huge growth potential, especially in Asia, we are poised to deliver attractive risk-adjusted returns to our investors.”
Keppel added that its fund would “continue to evaluate quality deals and platforms beyond Asia, should such opportunities arise”.
The post Keppel snaps up Global Marine Group appeared first on Energy News Beat.
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