SAN FRANCISCO (Thomson Financial) - Bristow Group Inc. said Wednesday it has agreed to sell its Grasso Production Management (GMP) business to Production Services Network Ltd. for $22.5 million.
GPM, a contract operator of oil and gas production facilities in the Gulf of Mexico, had revenue of $64.8 million and operating income of $4.2 million in the fiscal year ended March 31, Bristow said.
Houston-based Bristow said it is selling GPM for roughly book value, with a net loss of around $6 million related to taxes on non-deductible goodwill and transaction costs to be recorded in the quarter ended Dec. 31.
'While GPM has been an important part of the company for many years, sale of the business to a strategic buyer will allow GPM and its employees to grow the business while making Bristow Group a pure play in helicopter services principally to the offshore energy industry,' William Chiles, Bristow's president and chief executive, said in a statement.
Bristow shares rose 2.8% to $49.77. Gabriel Madway gm/vj COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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