Perth-based engineering and construction firm, Clough Limited, has finalized an agreement to sell its marine construction business to Malaysian company, SapuraCrest Petroleum Berhad for A$127 million.

 

Clough’s offshore Marine Construction Division  includes the derrick lay barge, Java Constructor, and associated marine construction equipment. Also included in the deal is Clough’s interest in the Clough Helix Joint Venture, which operates the chartered Normand Clough vessel, and investments in specialist engineering businesses, OFI and Peritus.

 

The division will continue to operate in Perth and Clough will continue to provide back office services for two years.

 

Clough CEO, John Smith, said that while Clough had a long history in marine construction, it was a sector that required large investment to compete with large regional and global players.

 

“Our results have been lumpy in this division and consistency requires scale, flexibility of assets and broad geographic coverage.”

 

Mr Smith said the transaction would leave the company with significant capacity for further investment.  There is speculation that it may be used to purchase the 69% of Perth-based engineering and construction firm, Forge, that it does not already own.