Adani Acquires Astro Offshore in Strategy to Expand Marine Operations
India’s ports operator Adani Ports and Special Economic Zone Limited (APSEZ) is acquiring a majority interest in offshore services company Astro Offshore as part of the group’s strategy to expand its marine operations. The Indian conglomerate run by billionaire Gautam Adani views the acquisition as a key step in its ongoing strategy to expand its operations internationally.
Adani is paying $185 million in cash to acquire the 80 percent stake of the Singapore-headquartered Astro implying a value of $235 million for the 15-year-old business. Astro is focused on the oil & gas industry with broad experience in offshore construction and maintenance for offshore platform platforms. The company had revenues of $95 million with EBITDA earnings of $41 in its last fiscal year.
Currently, Astro owns a diverse fleet of 26 Offshore Support Vessels (OSVs), including Anchor Handling Tugs (AHTs), flat top barges, Multipurpose Support Vessels (MPSVs), and work boats. Astro also offers marine services to major global EPC contractors, helping to build a roaster of Tier-1 customers in the oil and gas industry.
“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,” said Ashwani Gupta, CEO of APSEZ. “The acquisition will also give us access to Tier-1 customers while further consolidating our footprint across the Arabian Gulf, the Indian subcontinent, and the Far East.”
Adani has been working to grow its international presence expanding its port operation. The company runs 15 ports and terminals in India with a capacity of 627 million metric tons. The international expansion includes ports and development projects in Sri Lanka, Vietnam, Tanzania, and the contract for the Port of Haifa, Israel. Adani said the acquisition of Astro will augment its market footprint.
Adani is entering the offshore supply vessel (OSV) segment at a time when the global market is seeing record demand levels. Since 2016, the demand for vessels serving the energy industry has grown rapidly tied to the growth of the offshore wind industry. The recent recovery in the oil & gas sector is creating further interest in offshore operations while the industry has consolidated through a series of recent mergers and acquisitions.
Management of the companies highlights the opportunities with an expanded geographic footprint as well as further scale and diversity in the fleet mix. They look to leverage these strengths to accelerate growth and provide end-to-end solutions.