Cal Dive to Acquire Horizon Offshore

Helix Energy Solutions (NYSE: HLX) announced today that its majority owned subsidiary, Cal Dive International, Inc. (NYSE: DVR) has signed a merger agreement to acquire Horizon Offshore, Inc. (NASDAQ: HOFF) with a combination of Cal Dive stock and cash. A more detailed description of the transaction is included in a simultaneous announcement from Cal Dive.

Details of the transaction particularly pertinent to Helix shareholders are as follows:
— The aggregate consideration for Cal Dive’s acquisition is valued at
approximately $650 million, including approximately $22 million of
Horizon’s net debt as of March 31, 2007.
— Cal Dive will finance the cash component of the consideration for
the transaction (approximately $302.5 million) through borrowings,
and that debt will be non-recourse to Helix.
— The equity component of the consideration will be funded with
approximately 20.4 million shares of Cal Dive common stock
and the issuance of this equity will reduce Helix’s majority
interest in Cal Dive from 73% to approximately 59%.

Martin Ferron, President and Chief Executive Officer, stated “The acquisition of Horizon makes excellent strategic sense for Cal Dive. Among other things, it provides Cal Dive with platform abandonment capability in the Gulf of Mexico and improves their presence in key international markets. Both of these benefits are regarded as important growth drivers for Cal Dive.

“The deal is expected to be accretive to Cal Dive earnings and cash flow, even before cost and revenue synergies are tapped. This accretion, together with the increased float of Cal Dive stock, should enhance the value of Helix’s majority ownership position in Cal Dive.”

Helix Energy Solutions, headquartered in Houston, Texas, is an international offshore energy company that provides development solutions and other key life of field services to the open energy market as well as to our own oil and gas business unit. That business unit is a prospect generation, exploration, development and production company. Employing our own key services and methodologies, we seek to lower finding and development costs, relative to industry norms.

Popularity: 15%