Eidesvik teams up with Reach Subsea to acquire Edda Sun
Eidesvik Offshore has formed a joint venture with offshore services player Reach Subsea. The new entity will own and operate subsea vessel Edda Sun, with Eidesvik as majority stakeholder.
Edda Sun was built in 2009 and is a Subsea IMR vessel fitted to perform subsea survey activities and a wide variety of inspection, maintenance and repair work. Through the formation of a joint venture Eidesvik and Reach Subsea have partnered up to acquire the vessel. The joint venture is owned 50.1% by Eidesvik and 49.9% by Reach Subsea.
Under its new name Viking Reach the vessel will commence on a 6-year contract with Reach Subsea in the start of Q2, 2023. In addition to being co-owner, Eidesvik will provide full technical management, crewing and operation of the vessel.
Viking Reach will operate in the subsea market, which is one of Eidesvik’s strategic focus segments and a market with solid growth outlook for years to come.
Part of a growth strategy
The announcement of the joint venture follows Eidesvik’s announcement on February 22 that it has reached an agreement with its financial institutions on terms for refinancing the company’s debt until February 2026. The new terms will significantly strengthen Eidesvik’s financial position, and the final agreement is expected to be in place in March 2023.
“Our new financial terms will offer us a solid foundation for growing our business. The acquisition of Edda Sun is part of the company’s growth strategy and we are pleased to expand our fleet with this highly versatile vessel. We look forward to cooperating with Reach Subsea in this exciting new venture”, said Eidesvik Offshore CEO Gitte Gard Talmo.
“Eidesvik has been a strategic partner for Reach Subsea for many years and we are pleased to further strengthen our relationship. We are currently seeing record high activity in the subsea market and this joint venture represents an important step for us in terms of securing a long-term core fleet portfolio”, said CEO at Reach Subsea, Jostein Alendal.
Contacts for more information:
CEO Gitte Gard Talmo (+47 915 23 245)
CFO Helga Cotgrove (+47 907 35 246)