Neptune Marine to Acquire Ross Deeptech
Neptune Marine (ASX: NMS) has signed a Memorandum of Understanding for the proposed acquisition of Aberdeen-based Ross Deeptech Initiatives Limited, a highly respected provider of engineering support services to the subsea oil and gas sector and the offshore renewable energy sector.
Ross Deeptech generates annual revenue of almost £10 million and EBITDA of £2.1 million, and the business will be immediately earnings per share accretive to Neptune upon settlement. This is expected to be in January 2008.
To acquire Ross Deeptech, Neptune proposes to make a one-off payment of approx. £11 million (A$25 million) plus an adjustment for any land not to be acquired, once satisfactory due diligence has been completed and a formal sale agreement is entered into. The acquisition will be funded by way of an equity capital rising, the details of which will be finalized as the transaction progresses.
Ross Deeptech manufactures specialist subsea and offshore oil and gas equipment. It also provides support services for production, drilling, diving, construction and intervention projects in deepwater areas such as west of Shetland, Norway, Gulf of Mexico, West Africa, Canada, Egypt and Australia. The business has a team of 95 people operating in four locations throughout the UK. Customers include some of the world's leading blue chip energy corporations and contractors.
Ross Deeptech is also regarded as the industry leader for developers of marine renewable energy projects in the areas of wave and tidal systems and offshore wind projects. The group has experience working with a leading renewable energy technology, Pelamis.
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