Oceaneering International, Inc. announced it has acquired GTO Subsea AS (GTO) for approximately $45 million. GTO is a rental provider of specialized subsea dredging and excavation equipment, including remotely operated vehicle (ROV) deployed units, to the offshore oil and gas industry.
GTO equipment is used for the subsea suction, transport, and disposal of sand, clay, and rock associated with ocean floor construction, decommissioning, and drill support activities in support of offshore oil and gas exploration and production. GTO was established in 1999, is based in Kristiansund, Norway, and has an excellent operating reputation in the North Sea. GTO's technologically advanced equipment has also been utilized off Sakhalin Island and West Africa, and in the Gulf of Mexico.
T. Jay Collins, President and Chief Executive Officer, stated, "We are very pleased to add GTO's unique product line to our ROV tooling suite. For the entire year of 2008, GTO expects revenue of approximately $15 million. We therefore anticipate this acquisition will contribute about $12 million of revenue to our Subsea Products segment for the balance of this year and will be marginally accretive to our earnings.
"Given GTO's track record of success in the North Sea and our worldwide operating infrastructure, we will market this dredging and excavation equipment in conjunction with our ROV services on a global basis. We expect to grow the business as the oil and gas industry expands its level of subsea activity."