HOUSTON, Oct. 23, 2007 (PRIME NEWSWIRE) -- Superior Offshore International, Inc. (Nasdaq:DEEP) today announced it has signed a definitive agreement to acquire Ocean Flow International, LLC, a privately held deepwater subsea project engineering and offshore project management services firm based in Houston. The acquisition would be a stock-for-stock transaction valued at approximately $15 million. The closing, which is subject to customary conditions including obtaining certain consents, is expected in the fourth quarter of 2007.
"The acquisition of Ocean Flow is an important strategic element of our plan to transform Superior Offshore into a world-class subsea construction and services firm," said Jim Mermis, Superior's chief executive officer. "This transaction will give Superior significantly greater strength and capabilities in deepwater construction, pipeline engineering and project management. These added capabilities will enable Superior to pursue a broader range of large-scale projects and will also greatly enhance business development opportunities for the Superior Achiever, a DP III vessel, upon its completion during the second half of 2008," he said.
Ocean Flow's primary focus is the design, deployment, and management of subsea oil and gas field developments. It includes design of underwater hardware, flowlines, subsea systems, control systems, installations, procedures, commissioning, analyses, regulatory compliance documentation and final start-up of shallow and deepwater subsea fields. It also provides onstream technical support to operators of subsea oil and gas fields.
"This company is very well recognized in the marketplace for pipe project and system control engineering expertise," Mermis said. "Karl Winter, Ocean Flow's founder, has demonstrated a strong ability to bring together a highly technical team to successfully deliver top-quality deepwater engineering and project management services to their clients. He will join Superior as Senior Vice President -- Engineering and Subsea Development and continue his responsibilities as President of Ocean Flow, which will become a wholly owned subsidiary of Superior."
About Superior Offshore International
Superior Offshore International is a leading provider of subsea construction and commercial diving services to the offshore oil and gas industry, serving operators internationally and domestically in the outer continental shelf of the U.S. Gulf of Mexico. Construction services include installation, upgrading and decommissioning of pipelines and production infrastructure. Commercial diving services include inspection, maintenance and repair services and support services for subsea construction and salvage operations. The company also operates a construction/fabrication division. Superior Offshore operates a fleet of 11 service vessels and provides remotely operated vehicles (ROVs) and saturation diving systems for deep water and harsh environment operations.
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Forward-Looking Statements
Certain statements contained in this news release are forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include information concerning our possible or assumed future business and financial performance and results of operations, including statements regarding expected drydocking schedules and the dates vessels and equipment will be placed in service; expectations regarding demand for our services, operating revenues and other matters with regard to the outlook of our business and industry; our strategy, including the expansion and growth of our operations; and our plans, expectations and any effects of expanding our deepwater capabilities and pursuing international growth opportunities. We have based these statements on our assumptions and analyses in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such statements. Although it is not possible to identify all factors, we continue to face many risks and uncertainties. Some of the factors that could cause actual future results to differ materially are described under the caption "Risk Factors" in our Prospectus, dated April 19, 2007 and filed with the Securities and Exchange Commission on April 20, 2007, which may be obtained by visiting the Investor Relations section of our website under "Financial Information" at www.superioroffshore.com or from the SEC's website at www.sec.gov.