AqualisBraemar ASA (“AqualisBraemar”) has entered into an agreement to acquire 100 percent of the shares in LOC Group, thereby creating an even more complete service provider to the offshore renewables industry.
“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.
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.
THE COMBINED GROUP
Following completion of the acquisition, the combined group will be a leading global 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.
By joining the fast-growing specialist renewable entities of AqualisBraemar’s offshore wind consultancy firm OWC with LOC Group’s Innosea and other renewable focused units, the combined group will double its size within renewables.
The two companies have highly complementary market positions in the renewables sector. While AqualisBraemar has a strong position within provision of owners engineering services, LOC Group has a strong footprint within foundation design engineering and marine warranty services. In addition, whilst AqualisBraemar has focused on offshore wind, Innosea bring additional wave, tidal and floating solar capabilities into the combined group.
“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,” says David Wells.
FACILITATING ENERGY TRANSITION
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,” adds 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.
AqualisBraemar | https://aqualisbraemar.com
LOC Group | https://loc-group.com