Eneti Acquires Seajacks For ~8.13M Shares, $299M Of Assumed Debt, $74M Of Newly-Issued Redeemable Shares, $12M Cash

Eneti Inc NETI, through its subsidiary, has agreed to acquire 100% of Atlantis Investorco Limited, the parent of Seajacks International Limited ("Seajacks"), for consideration of ~8.13 million shares, $299 million of assumed net debt, $74 million of newly-issued redeemable notes, and $12 million of cash.
The share consideration is comprised of 7,433,031 common shares and 700,000 preferential shares in Eneti.
Seajacks is the largest owner of purpose-built self-propelled WTIVs globally and has a track record of installing wind turbines and foundations dating to 2009.
Eneti shareholders will own 58% of Eneti, and the Sellers will own 42%. As a result of the transaction, Mr. Hiroshi Tachigami of Marubeni Corporation, and Mr. Peter Niklai of INCJ, Ltd. will join the Eneti Board of Directors.
For FY21, Seajacks is expected to generate $125 million of EBITDA from projected revenues of $224 million, of which 89% is from firm contracts.
In 2022, Seajacks has firm revenue of approximately $118 million through employment contracts on 63% of the available days for the "Seajacks Scylla" and "Seajacks Zaratan."
With five WTIVs on the water and another high-specification new building scheduled for delivery in 2024, Eneti will have one of the largest, most capable installation fleets in the offshore wind sector.
The transaction is expected to close by mid-August 2021.
Price Action: NETI shares closed higher by 7.46% at $16.85 on Thursday.