Gulf Island Fabrication, Inc. (NASDAQ:GIFI) Files An 8-K Completion of Acquisition or Disposition of AssetsItem 2.01 Completion of Acquisition or Disposition of Assets
Gulf Island Fabrication, Inc. (the "Company") completed the sale of its North Yard facilities in Aransas Pass, Texas and certain associated equipment (collectively, the "Texas North Yard") to Berry GP, Inc. ("Purchaser"), an affiliate of Berry Contracting, L.P. d/b/a Bay Ltd ("Berry") for $28 million in cash on November 15, 2018 to its previously-announced agreement of sale between Berry and Gulf Marine Fabricators, L.P. dated as of September 26, 2018 (“Purchase Agreement”) which was assigned to Purchaser. The Texas North Yard is located along the U.S. Intracoastal Waterway and is approximately three miles north of the Corpus Christi Ship Channel. The Texas North Yard consists of approximately 160 acres and approximately 3,000 linear feet of water frontage, including approximately 1,000 feet of steel bulkhead.
The Company received approximately $26.5 million in net proceeds at closing plus $500,000 of earnest money received in September 2018, which was applied at closing, for total net proceeds of approximately $27 million. The Texas North Yard had a net book value of approximately $24 million on the date of sale and the Company expects to record a gain on the sale during the fourth quarter 2018.
As part of the sale, the Company will retain certain assets with a net book value of approximately $17 million (the "Remaining Assets") which it will continue to actively market for sale. The Remaining Assets primarily consist of three 660-ton crawler cranes, a barge, a plate bending roll machine, and panel line equipment. The Company is in process of moving these assets to its fabrication facilities in Houma, Louisiana.
The Texas North Yard was one of the facilities within the Company's Fabrication Division and its operations were not material during 2017 or 2018. The Company does not expect the sale of these assets to impact its ability to operate its Fabrication Division as previously operated.
A press release announcing the completion of the sale of the Texas North Yard is attached hereto as Exhibit 99.1.
The foregoing description of the transaction does not purport to be complete and is qualified in its entirety by reference to the Purchase Agreement, which is incorporated by reference herein as Exhibit 10.1
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
GULF ISLAND FABRICATION INC ExhibitEX-99.1 2 pressrelease-northyardsale.htm EXHIBIT 99.1 Exhibit EXHIBIT 99.1NEWS RELEASE For further information contact:Kirk J. Meche Westley S. StocktonChief Executive Officer Chief Financial Officer713.714.6100 713.714.6100FOR IMMEDIATE RELEASENovember 15,…To view the full exhibit click here
About Gulf Island Fabrication, Inc. (NASDAQ:GIFI)
Gulf Island Fabrication, Inc. (Gulf Island) is a holding company. The Company, along with its subsidiaries, is a fabricator of steel platforms and other specialized structures for customers in the offshore oil and gas industry. It also performs onshore and offshore construction and fabrication services for customers in the marine industry. Its primary activity is the fabrication of offshore drilling and production platforms and other steel structures for customers in the oil and gas and marine industries, including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms, piles, wellhead protectors. It conducts its operations through its subsidiaries, which include Gulf Island, L.L.C.; Gulf Marine Fabricators, L.P.; Gulf Island Marine Fabricators, L.L.C.; Gulf Island Shipyards, L.L.C.; Dolphin Services, L.L.C.; and Dolphin Steel Sales, L.L.C.
