Seatrium has divested its AmFELS Yard located at Brownsville in Texas, in the United States, for a consideration of $50.7 million (S$65 million).
The accretive divestment will allow Seatrium to enhance capital and operational efficiencies, while unlocking value from one of its surplus facilities.
The asset sale is being executed through Seatrium’s subsidiary, Seatrium AmFELS, which has entered into a binding agreement with Karpower Valley, a related party of Karpowership.
Following the asset divestment, Seatrium will transition its strategic presence in the U.S. to focus on engineering innovation and technology capabilities, through its technology centers and offices located in Houston, Texas, and service center in Vicksburg, Mississippi to support the evolving needs of its customers.
The consideration was arrived at after arm’s length negotiations with Karpowership and shall be satisfied in cash, of which $39 million (S$50 million) is deferred and to be paid one year after closing.
The book value of the divested assets as at June 30. 2025, sold on an ‘as is, where is’ basis, is approximately $30.4 million (S$39 million).
The completion of the divestment is subject to customary closing conditions, including the transfer of the lease to the new owner by the Port of Brownsville.
The group remains committed to completing all ongoing projects at AmFELS Yard by the end of 2025, ensuring a smooth and responsible transition for its customers and partners.
“We have a strong and longstanding relationship with Karpowership, and are pleased to entrust the yard to a partner with whom we will continue to deepen our collaboration. Notwithstanding the divestment, the U.S. market remains important to us.
“We will continue to leverage our global footprint and integrated One Seatrium Delivery Model to deliver world-class solutions to our U.S. based and global customers in the offshore and energy sectors,” said Chris Ong, Chief Executive Officer of Seatrium.
