India’s Adani Ports & Special Economic Zone Ltd. (APSEZ) agreed to acquire an 80% stake in Singapore-based Astro Offshore Group in an all-cash deal for $185 million, as part of its strategy to become one of the world’s largest marine operators.

Astro owns a diverse fleet of 26 offshore support vessels (OSVs) and its operations are spread out across the Middle East, Far East Asia, India and Africa, India’s largest ports and logistics company said in a stock exchange announcement.

The acquisition will add 26 OSVs to APSEZ’s current fleet of 142 tugs and dredgers, taking the total count to 168, it added.

“The acquisition will also give us access to an impressive roster of Tier-1 customers while further consolidating our footprint across the Arabian Gulf, the Indian subcontinent and Far East Asia,” APSEZ Chief Executive Officer and Whole-time Director Ashwani Gupta said.

Astro, whose Tier-1 customers include NMDC, McDermott, COOEC, Larsen & Toubro and Saipem, is a key player in the offshore construction & fabrication and offshore transportation markets. Its fleet of OSVs comprise anchor handling tugs (AHTs), flat top barges, multipurpose support vessels (MPSVs) and workboats and the company provides vessel management and complementary services.

APSEZ said the transaction is expected to be value accretive from the first year itself. There are no regulatory approvals required and the deal is likely to close within a month, subject to fulfilment of operational conditions, it added.

Astro Managing Director Mark Humphreys said the partnership with APSEZ represents a critical "inflection point for us” and together they can accelerate growth to add further scale and diversity to the fleet mix as well as expand geographical footprint and deliver more end-to-end solutions to customers.

The existing promoters of Astro will hold the remaining 20% stake in the company.

Astro, incorporated in 2009, posted a revenue of $95 million and EBITDA of $41 million in the year ended 30 April 2024 (FY24). The company was net cash positive as of 30 April 2024.

Astro’s revenue and EBITDA are likely to grow to $102 million and $53 million in FY25, respectively, according to the APSEZ’s presentation. The EBITDA margin is expected to expand to 52% in FY25 from 44% in FY24, driven by higher charter rates, it said.

(Send feedback to editor@cornerofficejournal.com)