French energy services giant Technip confirmed today it had acquired the assets of the north-east’s Subocean Group in a deal worth about £10million.
Most of the jobs at the Westhill-based subsea firm have been saved after it went into administration on Friday.
Technip is to employ about 300 of the workers at Subocean, which is a UK market leader in underwater cable-laying for offshore wind projects.
A Westhill-based spokeswoman for Technip said 50 redundancies were made at Subocean by administrator PwC.
Employees who will lose their jobs have all been informed.
The French group said the acquisition would contribute to Technip’s strategy to develop a leading position in the offshore renewables market.
The deal also includes Subocean’s land-based assets and some key future contracts, but Technip has not taken on Subocean’s debts.
“These remain with the administrator,” added the Technip spokeswoman. She also said Subocean directors were not transferring to Technip.
The Subocean operation will be absorbed into Technip’s renewables business and the name will disappear.
Ron Cookson, managing director of Technip UK, said: “We are very pleased to have been able to capitalise upon the high-potential renewables market, and look forward to welcoming Subocean into the Technip group.”
Last February, Technip revealed that Westhill had been selected as the headquarters for its offshore wind, wave and tidal power activities.
Technip announced it was to locate its North Sea offshore renewables head office in Westhill after talks with First Minister Alex Salmond.
The move involved just 20 immediate jobs, but the potential was claimed to be “huge”.
Technip chairman and chief executive Thierry Pilenko said then the company was committed to implementing expertise from its core business in the service of renewable energies.
The French group employs about 800 people in its Westhill operations.
After Subocean went into administration on Friday, it was almost immediately sold on by PwC to Technip.
The north-east firm had been suffering from cash-flow problems. PwC said it had been appointed administrator of Subocean as part of a financial restructuring.
The administrator said the sale followed an intense period of negotiation with a number of parties.
PwC did not say what debts Subocean had or what payout creditors may get.
Subocean, named second-fastest-growing private company in the UK last month, went to court earlier this month in a bid to avoid administration. The managing director was John Sinclair, former boss of CNS Subsea, which collapsed owing more than £20million in 2005.
CNS Subsea was then sold to its former boss and two other north-east businessmen – a move that provoked a furious reaction among the failed business’s ordinary creditors, who were told they would not get anything despite the deal.