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AqualisBraemar acquires 100% of LOC Group

By: Tom Russell 23/11/2020 AqualisBraemar

Corporate General

AqualisBraemar ASA (AqualisBraemar) has entered into an agreement to acquire 100 percent of the shares in LOC Group.

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).

In the renewables sector, LOC Group operates through Innosea, which is an independent engineering firm that specialises in the renewables sector, LOC which provides renewables marine warranty surveying, and Longitude which offers renewables engineering services particularly related to installation.

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 renewables industry through offshore wind consulting firm OWC and AqualisBraemar.

“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. LOC Group, with its strong and highly complementary footprint within the same industries, is a perfect fit for this strategy,” says David Wells, CEO of AqualisBraemar.

“The consulting space within marine and offshore energy – including renewables and oil and gas – 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,” says Dr R. V. Ahilan, CEO of LOC Group.

Following completion of the acquisition, the combined group will be an independent offshore energy and marine consultancy firm. It 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 renewables industry with even better local expertise and swifter response times regardless of where in the world they are,” adds David 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 David Wells.

LOC Group’s CEO, Dr R. V. Ahilan, will continue in the joint company in a newly created role as chief energy transition officer, supporting 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.

“The exponential growth we are witnessing within offshore renewables requires all the specialist competence it can get. However, this is not a numbers game, it is about working smarter. Combining OWC’s leading position within renewables consulting and engineering with Innosea’s specialist competence within fixed and floating substructure concept development and turbine engineering and analysis is one way to address this requirement. In addition, we have LOC’s leading position within marine warranty services for the offshore renewables sector,” says Dr Ahilan.

“Our objective is that 50 percent 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 Dr Ahilan.

AqualisBraemar has entered into an agreement to acquire 100 percent 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 USD 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.

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AqualisBraemar acquires 100% of LOC Group

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