AqualisBraemar completes LOC Group acquisition
AqualisBraemar ASA (AqualisBraemar)
has completed the acquisition of 100 percent of the shares in LOC Group.
The purchase price consideration was a USD 20.2 million cash consideration
plus two million conditional warrants in AqualisBraemar
AqualisBraemar has acquired 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.
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). Similar to AqualisBraemar, LOC Group operates
within the shipping, oil and gas and renewables sectors.
“This is a great day for both AqualisBraemar and our clients. We effectively
double the size of our group, which will benefit our customers through
greater capacity, improved geographical footprint and a much more complete
skills base. With both companies having similar profiles it also allows
us to maintain our stated ambitious growth targets in support of the global
energy transition,” said David Wells, CEO in Oslo-listed AqualisBraemar.
The combined group will have a total of 880 employees in 67 offices in
39 countries all over the world. On preliminary pro-forma basis, the combined
group has delivered revenues of USD 139 million in the past twelve months
(AqualisBraemar stand-alone: USD 76 million) up until 30 September 2020,
with an adjusted EBITDA of USD 12.5 million (USD 5.7 million). The joint
group’s order backlog was USD 83 million (USD 28 million) at the end of
the third quarter.
By joining the renewable entities of AqualisBraemar’s offshore wind consultancy
firm OWC and LOC Group’s Innosea and other renewable focused units, the
combined group will double its size within renewables.
The group aims to grow in the offshore renewables industry, and leverage
on its position within shipping and oil and gas markets.
“Our objective is that 50 percent of our revenues should come from the
renewables sector and other sustainability and CO2-reducing activities
in 2025. Reducing the carbon intensity of the offshore oil and gas and
shipping industries are also key to achieving the energy transition the
world requires. We will continue to support all these industries to help
make this energy transition happen,” added Wells.
AqualisBraemar and LOC Group will be trading separately until the latter
part of April 2021. As resolved by the extraordinary general meeting held
on 14 December 2020 (the “EGM”), the parent company of the group, AqualisBraemar
ASA, will change its name to AqualisBraemar LOC ASA with effect from today.
AqualisBraemar was advised by Clarksons Platou Securities AS as sole financial
advisor, Advokatfirmaet Haavind AS and Eversheds Sutherland as legal advisors,
and Corporate Communications AS as communication advisor.