Adani Ports Buys 80 Percent Stake in Astro Offshore for $185 Million
Adani Ports and Special Economic Zone (APSEZ) has disclosed that it is acquiring an 80% stake in the global offshore support vessel operator Astro Offshore for $185 million in an all-cash transaction. This acquisition is set to strengthen Adani Ports' global marine portfolio and attract new Tier-1 customers. With an implied enterprise value of $235 million, the deal is anticipated to be value-accretive from the very first year, according to the flagship company of the Adani Group.
"Astro’s acquisition is part of our roadmap to becoming one of the world’s largest marine operators. Astro will add 26 OSVs to our current fleet of 142 tugs and dredgers, taking the total count to 168", said Ashwani Gupta, Whole-Time Director and CEO, APSEZ. "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", he added.
Astro is a prominent global offshore support vessel (OSV) operator with a presence in the Middle East, India, Far-East Asia, and Africa. The company owns a fleet of 26 OSVs, including anchor handling tugs (AHTs), flat top barges, multipurpose support vessels (MPSVs), and workboats, and offers vessel management and related services. For the fiscal year ending April 30, 2024, Astro reported revenue of $95 million, EBITDA of $41 million, and maintained a positive net cash position.
Mark Humphreys, Managing Director, Astro Offshore, said that over the past 15 years, "we have created an impressive company trajectory, driven by strategic investments in our OSV fleet and deep relationships with our customers".
"This partnership with APSEZ represents a critical inflection point for us. Together, we can accelerate growth to add further scale and diversity to our fleet mix, expand our geographical footprint and deliver more end-to-end solutions to our customers", he added.
Astro's vessels are also utilized for various operations by major international dredging companies, including significant offshore construction and land reclamation projects. No regulatory approvals are needed for the transaction, which is anticipated to be completed within a month, as stated by the company. Adani Ports, the largest port developer and operator in India, manages seven strategically situated ports and terminals on the west coast and eight on the east coast.
