Aqualis ASA, the parent of marine and offshore engineering consultancy Aqualis Offshore, has entered into an agreement to acquire the Offshore, Adjusting and Marine business lines from Braemar Shipping Services Plc.
The combined company, to be renamed AqualisBraemar ASA, will be a offshore, adjusting, marine and renewables consultancy with a broadened service offering across all major basins.
“Through this transaction, existing and potential clients of Aqualis Offshore and Braemar Technical Services will be able to benefit from gaining access to new capabilities and broader suite of services on offer as well as increased manpower and geographical footprint to enable even quicker and more cost-efficient operational support at or in close proximity to our clients’ offices and assets,” says David Wells, CEO of Aqualis Offshore and Oslo-listed energy consultancy group Aqualis ASA.
Aqualis Offshore is a specialised offshore marine and engineering consultancy firm, focusing on the shallow and deep-water offshore segments of the oil and gas industry. The company has a broad service offering within the offshore oil and gas segment, leading within engineering services, rig moves and complex offshore transportation.
Braemar Technical Services also provides a broad service offering within the offshore oil and gas segment, leading within engineering services and rig moves. Within offshore oil and gas, the two companies are highly complementary in terms of geographical footprint, given Aqualis’ leading position in the Middle East, Braemar’s leading position in Asia Pacific, as well as both companies’ strong presence in Europe and North America. Both companies have offices in all the major oil and gas hubs around the world.
The company’s head office will be located in London, UK. David Wells will continue as CEO of the group.
“By joining forces, we create a more sustainable business with strong platform for international growth. We will be better able to support our clients’ growth by offering our joint and enhanced leading expertise. With our larger scale, more resources and our engaged and talented people, we will improve our ability to meet our clients’ needs globally,” adds David Wells.
The combined company will be divided into four divisions, each with a strong presence in their respective markets: Offshore, Marine, Adjusting and Renewables. It will have a total of more than 430 full-time equivalent employees globally. The combined company’s revenue for the twelve months ended December 31, 2018 was approximately US$76 million, with Aqualis and Braemar Technical Services representing approximately US$36 million and US$40 million respectively.
"We are delighted to be announcing the sale of substantially all of Braemar’s Technical division to Aqualis ASA in exchange for an equity stake in the enlarged group. Our respective businesses fit well together and the combination will create a market leading position in Offshore, Marine, Adjusting and Renewables services with global coverage which will enable the stronger combined business to unlock significant revenue and cost synergies. We strongly believe that the enlarged Aqualis group, which will retain the Braemar name and trade as AqualisBraemar, will bring numerous benefits and opportunities to both clients and employees going forward,” says James Kidwell, CEO of Braemar.
“As the largest shareholder in AqualisBraemar we look forward to developing the business with the management team, which has an excellent track record of growing businesses in these sectors,” Kidwell adds.
The consideration in the transaction comprises a combination of Aqualis shares and performance-based warrants, making Braemar the largest shareholder in Aqualis with an initial shareholding of approximately 26%, potentially increasing to 33% depending on business performance.
Completion of the transaction is subject to the approval by Aqualis’ shareholders at the Annual General Meeting, expected to be held on or about 11 June 2019. The transaction is not subject to any regulatory approvals. Given approval at the AGM, the transaction is expected to close by the end of June 2019.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/13052019/aqualis-offshore-and-braemar-technical-services-to-join-forces/