AqualisBraemar to acquire LOC Group
Published by Nicholas Woodroof,
“Our strategy is clear; we want to leverage on our position within oil and gas markets to support the global energy transition. LOC Group, with its strong and highly complementary footprint within the same industries, is a perfect fit for this strategy,” said David Wells, CEO of AqualisBraemar.
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 in the offshore oil and gas industry through AqualisBraemar.
LOC Group, founded in 1979, is an international marine and engineering consulting firm that operates under four brand names: LOC, Innosea, Longitude and JLA (John LeBourhis).
LOC operates in the oil and gas industry, providing loss prevention and loss management services as well as marine and engineering consultancy services. Longitude provides independent engineering and design consulting to the oil and gas sector, while JLA delivers rig-related approval services around the globe.
“The consulting space within offshore energy – including oil and gas and renewables – is ripe for consolidation. Our customers’ needs are rapidly evolving, with many branching out into new energy sources, and we believe our joint increased scale and wider global footprint will help us cater for those requirements,” said Dr R. V. Ahilan, CEO of LOC Group.
Following completion of the acquisition, the combined group will have a total of 880 employees in 85 offices in 39 countries all over the world.
“Our complementary geographical footprint reiterates how this acquisition will allow us to provide clients in the oil and gas industry with even better local expertise and swifter response times regardless of where in the world they are,” added Wells.
“We are combining two well-run businesses to create an even more complete service provider. You would have to look very, very hard to find a better strategic fit than AqualisBraemar and LOC Group. This is a key reason for why key managers have decided to continue with the combined group,” said Wells.
Ahilan will continue in the joint company in a newly created role as chief energy transition officer, supporting the group’s ambition of 50% 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 objective is that 50% of our revenues should come from the renewables sector and other sustainability and CO2-reducing activities in 2025. However, reducing the carbon intensity of the offshore oil and gas and shipping industries are also key to achieving the energy transition the world so desperately needs. We will continue to support all these industries to help make this energy transition happen,” added Ahilan.
AqualisBraemar has entered into an agreement to acquire 100% of the shares in Neptune Midco 1 Limited from the ultimate parent company of the LOC Group, LOC Group Holdings Limited, the shareholders of which include pan-European investment group Bridgepoint and key employees of LOC.
The purchase price consideration consists of a combination of US$20.2 million net cash consideration, subject to customary adjustments prior to closing, plus conditional warrants in AqualisBraemar.
Closing of the acquisition is expected on or around 21 December 2020. The transaction is subject to approval of an equity issue by an extraordinary general meeting (EGM) in AqualisBraemar. The EGM will be held on or about 14 December 2020.
AqualisBraemar and LOC Group will be trading separately for up to six months following completion of the transaction.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/24112020/aqualisbraemar-to-acquire-loc-group/
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