Saipem offloads drilling unit to KCA Deutag for $550mn
Italy's Saipem has struck a deal to sell its drilling onshore business to UK-based KCA Deutag for $550mn, the companies announced on June 1.
Saipem will also receive a 10% stake in the combined business, the company said, noting that the transaction did not include any debt transfer. Its onshore drilling business works in 13 countries, with a focus on the Middle East and the Americas. The unit earned €82mn ($88mn) in adjusted EBITDA in 2021, on the back of €347mn in revenue.
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In 2022, the business is expected to account for a fifth of Saipem's overall adjusted EBITDA.
Saipem said the sale would help it improve its liquidity and pay off debt. The company suffered a €2.4bn loss last year, its second annual one in a row, due in part to delays with wind turbine contracts. KCA Deutag said the deal would expand its operations in the Middle East, and in key markets in Europe and Latin America.