Neptune Marine finalises acquisition for $21.8m

West Perth-based dry welding company Neptune Marine Services Ltd has finalised the acquisition of Texas-based diving contractor US Underwater Services for $17.4 million and a share issue worth around $4.4 million.

The full text of a company announcement is pasted below

Neptune Marine Services (ASX NMS) today announced the completion of the US Underwater Services (USUS) acquisition. The final terms of which were in accordance with the terms of a Securities Purchase Agreement entered into on 15 April 2007.

On completion Neptune paid the sum of USD$14,338,410 (approx. AUD$17,381,000) in cash to the vendors and for certain transaction expenses. The Company issued 5,560,252 fully paid ordinary shares to specified employees of USUS and in part satisfaction of certain indebtedness of USUS. Neptune also re-financed the debt facilities of USUS.

The cash payment to complete the acquisition was raised via the Company's recent successful institutional placement. Shareholder approval for the issue of the shares was obtained at the Company's EGM on 29 May 2007.

As part of the acquisition the principle of USUS, Michael Erinakes, and two other senior managers have agreed to remain with USUS for three years.

Neptune's Managing Director, Christian Lange, says he is pleased to complete the acquisition which will significantly strengthen Neptune's service delivery model, expand market share and provide a permanent presence in the lucrative US Oil & Gas market.

"The successful acquisition of USUS is the first step towards building Neptune's diversified portfolio of services and solutions in the United States Oil & Gas market. Neptune will continue to deliver our NEPSYS technology off the back of successful implementation on projects in the Gulf of Mexico and we have identified a healthy pipeline of future opportunities in the region."

"As part of Neptune, USUS can now market a fully integrated sub sea engineering services capability to its customer base and undertake more sophisticated and sizeable projects. This is an opportunity for Neptune and USUS to grow together and leverage the synergies that exist within the businesses," Mr Lange said.

"We are looking forward to working with Mike Erinakes and his team, and are confident that their extensive experience will help Neptune to continue building a successful business in the region."

Neptune Marine Services project manages and delivers quality sub sea maintenance services to the Oil and Gas and Maritime industries. Our flagship NEPSYS technology delivers long lasting, high quality in situ repairs to platforms, pipelines, vessels and marine infrastructure while minimising operational downtime through the only permanent, dry quality welding solution in a non-hyperbaric underwater environment.