Adani Ports Acquires 80% Stake in Astro Offshore for $185 Million to Expand Global Fleet

Adani Ports and Special Economic Zone Ltd (APSEZ) is set to strengthen its position in the marine operations sector by acquiring an 80% stake in Astro Offshore, a global offshore service vehicle (OSV) operator. The acquisition, valued at $185 million in an all-cash deal, is expected to enhance APSEZ's fleet and market presence across key regions such as the Middle East, India, Far East Asia, and Africa.

Deal Overview and Strategic Significance

The deal implies an enterprise value (EV) of $235 million for Astro Offshore, with an EV/FY25E EBITDA multiple of 4.4x. According to a company press release, this acquisition is anticipated to be value accretive from the first year itself, underscoring its strategic importance to APSEZ’s growth plans.

Astro Offshore’s Fleet and Operations

Astro Offshore boasts a diversified fleet of 26 OSVs, including anchor handling tugs (AHTs), flat top barges, multipurpose support vessels (MPSVs), and workboats. The company provides vessel management and complementary services to a roster of Tier-1 customers such as NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem. This acquisition will add these 26 OSVs to APSEZ's existing fleet of 142 tugs and dredgers, bringing the total count to 168.

Statements from Leadership

Ashwani Gupta, Whole-Time Director & CEO of APSEZ, highlighted the strategic value of this acquisition: "Astro's acquisition is part of our roadmap to becoming one of the world's largest marine operators. This deal allows us to further consolidate our footprint across the Arabian Gulf, the Indian subcontinent, and Far East Asia while accessing an impressive roster of Tier-1 customers."

Mark Humphreys, Managing Director of Astro Offshore, echoed the sentiment: "This partnership with APSEZ represents a critical inflection point for us. Together, we can accelerate growth, expand our geographical footprint, and deliver more end-to-end solutions to our customers."

Financial Performance and Market Impact

Astro Offshore reported a revenue of $95 million and an EBITDA of $41 million for the year ending April 2024. The acquisition is poised to enhance APSEZ’s operational capabilities and financial performance. Following the announcement, APSEZ shares were marginally up by 0.56% at ₹1,484.05 per share as of 3:19 pm.

Future Growth Prospects

With this acquisition, APSEZ is poised to significantly expand its global marine operations, leveraging Astro Offshore's expertise and fleet to offer a broader range of services. The move aligns with APSEZ's vision to become a leading global marine operator, expanding its fleet and geographic reach while enhancing service capabilities for its growing list of prestigious clients.

Conclusion:

The acquisition of an 80% stake in Astro Offshore represents a strategic milestone for Adani Ports, enhancing its fleet size, market presence, and customer base. This move marks another step toward becoming a global leader in marine operations.

[Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Please conduct your own research or consult a financial advisor before making any investment decisions. The content reflects news and market trends at the time of writing and may be subject to change.]