TTS Will Now Focus on Its Marine Division

TTS Group ASA (TTS) rose the most in more than nine years in Oslo trading after the developer of equipment for the marine and energy industries sold a drilling machinery unit to Cameron International Corp. (CAM) for $270 million. TTS advanced as much as 31 percent, the most since January 2003. Under the deal, TTS will also get payments based on three years of revenue and retain its cranes and winches business, it said today in a statement. The transaction is expected to boost profit by 300 million kroner ($52 million), the company said. “It’s a good price, ” said Goeran Andreassen, an analyst at RS Platou Markets AS. “It’s a 70 percent premium relative to implicit pricing of that part of the business. ” There may be potential buyers for the rest of the company, he said. The company, based in Bergen, Norway, jumped 21 percent to 18 kroner by 2: 09 p. M. In Oslo, for a 90 percent gain this year. TTS will now focus on its Marine division, which supplies cargo and deck equipment for vessels such as car-carriers, mega- yachts and cruise ships, and contributed 87 percent of earnings before interest, taxes, depreciation and amortization in 2011. “We expect the shipping industry to move towards a considerable restructuring after several years of recession, ” Chief Executive Officer Johannes D. Neteland said in the statement. “TTS Group is now favorably positioned to participate in the further development. ” Proceeds are sufficient to repay the 509-million kroner of net interest bearing debt TTS reported at the end of last year. Source: bloomberg.com