Kvaerner AS and Matrix Service Company signed a definitive agreement for the sale of Kvaerner’s onshore construction business in North America to Matrix Service Company for an enterprise value of USD 80.3M. The divestment enables Kvaerner to focus its efforts on further developing its upstream oil and gas business.
In the transaction, Matrix will receive ownership of certain assets of Kvaerner North American Construction in the US and the shares in Kvaerner North American Construction in Canada. The business will continue to be led by their existing management and operational teams. In 2012, the business delivered revenues of about USD 280M and an EBITDA margin of approximately 5%. Kvaerner will retain the assets and liabilities related to the contract with Longview Power, including any financial effects of the arbitration.
In line with the upstream focused strategy, Kvaerner will continue to develop its Houston-based entity focusing on offshore field development, Kvaerner Field Development. Following the sale, Kvaerner will not have any remaining operations in the US within the Downstream & Industrials segment, and remaining legacies within the segment will be presented as discontinued operations in the company's accounts going forward.