Orion Marine Group Inc. announced on February 29 that is had acquired substantially all of the assets and business of Subaqueous Service Inc. (SSI) for $35 million in cash. Orion will fund the acquisition using a portion of its term loan bank facility and will operate the acquired assets under the name Subaqueous Services LLC based in Jacksonville Florida.
SSI is a specialty dredging services provider that focuses on shallow water dredging projects in Florida and along the Atlantic Seaboard using both mechanical and hydraulic cutter suction pipeline dredging. Over its 25 year history SSI has provided services on projects such as the dredging of ports inlets and Florida’s intracoastal waterways wetland creation shoreline stabilization beach nourishment lake restoration and port expansion to a variety of private and public customers. SSI estimates its 2008 revenues will be between $40 and $45 million with comparable EBITDA margins to Orion Marine Group’s long term goals.
Orion’s President and Chief Executive Officer Mike Pearson said “This acquisition adds hydraulic cutter suction dredging capabilities to our east coast operations and allows the company to further expand its footprint for turn-key marine construction capabilities in the Florida and Atlantic Seaboard markets. By having these types of dredging services available in Florida we will have the opportunity to attract new projects with enhanced capabilities to meet our customer’s complete marine contracting needs.”
Subaqueous Services LLC President Curtis Huggins formerly with SSI said “We are excited to be a part of the full-service capabilities Orion Marine Group provides. Our services further compliment Orion Marine Group’s Florida-based marine operations with the equipment manpower and expertise to provide top-quality dredging capabilities as we work together to meet and exceed our customers’ needs”.