AqualisBraemar to Buy LOC Group
AqualisBraemar ASA revealed Monday that it has entered into an agreement to acquire 100 percent of the shares in LOC Group.
Following completion of the acquisition - which AqualisBraemar says will be fully funded through a combination of cash, bank loan and new equity - the combined group will be a leading global independent offshore energy and marine consultancy firm, according to the company.
On preliminary pro-forma basis, the combined group has delivered revenues of $139 million in the past 12 months (AqualisBraemar standalone - $76 million) up until September 30, with an adjusted EBITDA of $12.5 million ($5.7 million). The joint group’s order backlog was $83 million ($28 million) at the end of the third quarter.
The companies have identified an estimated $3.5 million in annual cost synergies. This includes facility redundancy, utilization improvement, capital efficiency and SG&A optimization. The combined company will have a total of 880 employees in 85 offices in 39 countries around the world. Today, AqualisBraemar has 465 employees, including subcontractors on a 100 percent utilization basis.
LOC Group’s CEO, R. V. Ahilan, will continue in the joint company in a newly created role as chief energy transition officer. Ahilan will support the group’s ambition of 50 percent of revenues coming from renewables and other sustainability and CO2-reducing activities by 2025. He will also join the combined group’s executive management team.
“Our strategy is clear; we want to grow through continued expansion in the rapidly growing offshore renewables industry, and leverage on our position within shipping and oil and gas markets, to support this energy transition,” David Wells, the chief executive officer of AqualisBraemar, said in a company statement.
“LOC Group, with its strong and highly complementary footprint within the same industries, is a perfect fit for this strategy and will support our ambition of consistently returning capital to our shareholders,” he added.
AqualisBraemar is an Oslo-listed group that offers consultancy services to the offshore energy industries, including renewables and oil and gas, plus shipping and insurance industries. It operates under three brand names; AqualisBraemar, AqualisBraemar Yacht Services, and offshore wind consulting firm OWC. Founded in 1979, LOC Group is an international marine and engineering consulting firm that operates under four brand names; LOC, Innosea, Longitude and JLA (John LeBourhis).
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