Dome Acquires Davie Shipbuilding At Total Cost Of $38.6 Million

Dome Petroleum Limited and Davie Shipbuilding Ltd. recently announced that Dome has acquired all the shares of Davie for a total consideration of $38.6 million, consisting largely of shares of Dome and the balance in cash.

Davie net income after tax for 1980 was $7 million.

The assets acquired include the Davie shipyard at Lauzon, Quebec, and Davie's Branch Line shipping division, comprising six vessels involved in petroleum product shipments along the St.

Lawrence and on the Atlantic Seaboard. These vessels will be operated by another company.

The present management and staff will continue to manage and operate Davie's shipyard, now Canada's largest.

Dome indicated that it plans an immediate and substantial expansion of the Davie shipyard to enable it to construct some of the large vessels required by Dome for use in its Beaufort Sea operations.

In addition, this expansion will equip the yard to fabricate equipment required for petroleum exploration and production off Canada's East Coast, including semisubmersible drilling equipment, and also components for icebreaking supertankers and LNG vessels to be built elsewhere in Canada.

The manpower complement at Lauzon, presently at 2,300, is expected to double within three or four years. The Davie management has recently negotiated successfully with the shipyard union a new contract whose implementation will not be affected by the acquisition. The Davie yard will continue its existing business, including the manufacture of jackup drilling rigs, small- and medium-size vessels, and repairs.

Purchase of this shipyard does not conflict with Dome's plans for the construction of a new shipyard for building large vessels.

Maritime Reporter Magazine, page 38, Jul 15, 1981

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.