Shipping giants BW Group and Scorpio Group have struck a deal to form the world’s biggest owner of wind turbine and foundation installation ships.
They are merging BW and Swire Pacific-backed owner Cadeler with Scorpio’s Eneti in a $1.2bn all-share deal.
Oslo-listed Cadeler will offer investors in New York-listed Eneti 3.409 Cadeler shares for every Eneti share.
Cadeler will have 60% and Eneti 40% of the combined company.
The combined group will keep the Cadeler name and be headquartered in Copenhagen, Denmark, with both listings retained.
The transaction has been unanimously approved by the board of directors of each company.
Scorpio Group and its affiliates have 29% of Eneti, and its executives have another 7%.
BW Group and Swire Pacific own 45% in Cadeler.
Danish investor J Lauritizen also has a stake in both outfits.
The Cadeler fleet consists of two wind turbine installation vessels (WTIVs) currently on the water, two more scheduled for delivery in 2024 and 2025, and two wind foundation installation vessels coming in 2025 and 2026.
Non-core vessels to be sold
Eneti has five WTIVs, with two more due for delivery in 2024 and 2025.
Of the five existing ships, three are considered non-core assets and could be sold before the combination is finalised.
The fleet will then consist of 10 modern vessels.
BW Group supremo and Cadeler chairman Andreas Sohmen-Pao said: “This is a strategic transaction combining two leading offshore wind companies.”
“It underpins Cadeler’s vision and capability to facilitate the renewable transition, and I support the transaction on its industrial and financial merits.”
Emanuele Lauro, executive chairman and chief executive of Eneti, said: “This combination is right for our shareholders, right for our customers, and right for our employees. We are truly thrilled to be joining forces with Cadeler.
“Our scale and our respective capabilities will create significant value at a time when offshore wind needs reliable partners and reliable solutions.”
A valued legacy
Eneti is the former Scorpio Bulkers, which sold all of its dry cargo ships and entered wind shipping, buying UK shipowner Seajacks International.
Lauro said the track record of Seajacks has been built on the tireless efforts of its shore and seagoing professionals.
“We are delighted Cadeler values this legacy so dearly,” he said. “The prospects for our combined companies, in the context of industry demands over the coming decade, could not be brighter.”
Cadeler chief executive Mikkel Gleerup said the deal will represent a significant step up in the company's ability to meet the increased demand globally for projects with larger scopes and project sizes in service of the much-needed green transition.
“To deliver on this ambition, we will provide our customers with the largest and most diverse fleet in the industry, operated by highly skilled teams with unique expertise and track records,” he said. “For customers, the combined fleet will unlock unrivalled value due to increased cross-utilisation of resources and improved flexibility, capacity, and agility.”
