ADNOC Logistics and Services plc (ADNOC L&S), a global energy maritime logistics leader, has announced the completion of its $1.04 billion (AED 3.8 billion) acquisition of an 80% stake in Navig8 TopCo Holdings Inc. (Navig8). The transaction includes a contractual commitment for ADNOC L&S to acquire the remaining 20% stake by mid-2027. This acquisition marks a transformative step in ADNOC L&S’s strategy to enhance its global footprint and expand its service portfolio, particularly in the bunkering and commercial pooling sectors.
A milestone in global expansion
Navig8, an international shipping pool operator and commercial management company, manages a modern fleet of 32 tankers and operates in 15 cities across five continents. It also oversees investments in technical management services and a marine fuels provider, Integr8 Fuels, which operates in over 1,000 ports globally. This acquisition strengthens ADNOC L&S’s leadership in energy maritime logistics, aligning with its strategy of diversification and market expansion.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, emphasized the significance of the acquisition, stating “The completion of this landmark acquisition is a significant milestone in our transformational growth strategy. By integrating Navig8’s extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders. This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company.”
Strategic impact on operations and services
The acquisition enhances ADNOC L&S’s service capabilities by adding commercial pooling and bunkering services to its portfolio. It also broadens the company’s international reach and technical management expertise while introducing new ESG-focused industrial and digital solutions. This aligns with ADNOC L&S’s commitment to delivering innovative and sustainable services to its customers.
Nicolas Busch, CEO of Navig8, expressed enthusiasm for the partnership “We are excited to join forces with ADNOC L&S and the wider ADNOC Group. This achievement highlights the exceptional efforts of the Navig8 team over the past two decades, setting the stage for this next phase. Together, we aim to deliver even greater benefits to our customers, supporting ADNOC L&S’s growth and expanding Navig8’s presence in new markets.”
Financial benefits and synergies
The acquisition is projected to be value-accretive, with an anticipated boost in ADNOC L&S’s earnings per share by at least 20% in 2025 compared to 2024. From 2026, the integration is expected to unlock $20 million (AED 73.4 million) in annual synergies, further solidifying the financial and operational benefits of the deal.
Key transaction details include:
- Ownership structure: ADNOC L&S acquired 80% of Navig8, with economic ownership effective from January 1, 2024. The remaining 20% will be acquired in mid-2027 for deferred consideration of $335 million to $450 million (AED 1.2 billion to AED 1.7 billion), depending on EBITDA performance.
- Fleet expansion: The addition of 32 tankers bolsters ADNOC L&S’s existing fleet, enabling the company to meet rising global energy logistics demands.
Building on past successes
This acquisition builds on ADNOC L&S’s successful integration of Zakher Marine International (ZMI) in 2022, underscoring its commitment to sustainable growth and diversification. By leveraging Navig8’s capabilities, ADNOC L&S aims to deliver enhanced value to its stakeholders and expand into untapped markets.
About Navig8 Group
Founded nearly two decades ago, Navig8 is a premier shipping pool operator and commercial management firm with a diverse fleet of crude, refined products, and chemical tankers. Operating in 15 cities worldwide, Navig8’s subsidiaries include Integr8 Fuels, a leader in marine fuel management.
About ADNOC Logistics & Services
ADNOC Logistics & Services Plc (ADNOC L&S), listed on the Abu Dhabi Securities Exchange, is a global energy maritime logistics company headquartered in Abu Dhabi. The company operates through three primary business units: integrated logistics, shipping, and marine services, delivering energy products to over 100 customers across more than 50 countries. ADNOC L&S is a key player in supporting the energy transition, with a strong focus on sustainability, innovation, and operational excellence.
Source ADNOC Logistics & Services