ALL VESSELS (excluding one), plant and other equipment operated by Broadsword Marine Services will be sold to Bhagwan Marine for $25 million as part of a conditional agreement.
Broadsword Marine was a subsidiary of Skilled Group, which was acquired by Programmed Maintenance Services in October 2015.
The sale remains subject to due diligence, bank and board approvals, with payment terms for the Bhagwan transaction to be spread over two years.
Programmed said it remains committed to being a leading provider of marine and offshore manning, catering and logistics services.
However, owning a fleet of vessels in a single region is not considered a core part of its group strategy, according to the company.
Proceeds from the sale will be used to retire debt, Programmed said in its announcement.
The current trading performance of the Broadsword business has weakened and this transaction will remove the risk of further volatility in earnings, Programmed added.
The remaining vessel is subject to a separate offer from an overseas buyer conditional upon inspection and other normal vessel sale terms.
Skilled acquired Broadsword Marine Contractors in June 2013 for $75.5 million, of which $26.7 million was to be paid over three years.