SINGAPORE - Singapore rig builder Sembcorp Marine said its unit has entered a sale and purchase agreement with existing shareholders to acquire LMG Marine for US$20 million (S$26.9 million).

LMG is a naval architecture as well as ship design and engineering house headquartered in Bergen, Norway, with offices in Poland and France.

The firm, set up in 1943, has a design and engineering portfolio that includes work for cruise ships, car ferries, and offshore support vessels, among others.

LMG originally came up with several key designs adopted by Sembcorp Marine, such as the next-generation Espadon drillship design.

The firm will pay in cash using internally generated funds and the sale amount include the firm's estimated net tangible asset value of US$3.8 million as at July 31, and its intellectual property and patents.

Sembcorp Marine said: "It brings into the company a cache of design patents and expertise in naval architectural design, engineering and technology development."

Chief executive Wong Weng Sun added this is part of ongoing efforts to move up the value chain so it can compete better.