Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, has announced a definitive agreement to acquire an 80% stake in Astro Offshore for USD 185 million. The deal, which values Astro at USD 235 million with an EV / FY25E EBITDA multiple of 4.4x, is expected to be value accretive from the first year itself.
Founded in 2009, Astro Offshore is a prominent global operator of Offshore Support Vessels (OSVs) with a significant presence in the Middle East, India, Far East Asia, and Africa. The company operates a fleet of 26 OSVs, including Anchor Handling Tugs (AHTs), flat top barges, Multipurpose Support Vessels (MPSVs), and workboats. Astro also offers vessel management and supplementary services. For the year ending April 30, 2024, Astro reported revenue of USD 95 million and an EBITDA of USD 41 million. As of the same date, Astro is net cash positive.
Astro Offshore boasts an impressive client roster, including major industry players such as NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem. The company is a key player in the offshore construction, fabrication, and transportation markets. Astro’s pre-qualified status with major global EPC contractors and its ability to deliver a wide range of ocean-going vessels have established its strong position in the oil and gas industry.
The company’s extensive experience in supporting the construction and maintenance of offshore platforms, oil and gas fields, and subsea facilities has enabled it to provide cutting-edge services in offshore exploration and drilling markets. Additionally, Astro’s vessels support large offshore construction and land reclamation projects for international dredging companies. By maintaining a strategic mix of medium to long-term contracts, Astro ensures high fleet utilization and benefits from increasing charter rates due to the global supply constraints in the OSV sector.
Mr. Ashwani Gupta, Whole-time Director & CEO of APSEZ, commented on the acquisition: “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, bringing the total to 168 vessels. This acquisition not only enhances our fleet but also expands our customer base with Tier-1 clients, further strengthening our presence in the Arabian Gulf, Indian subcontinent, and Far East Asia. We are excited to collaborate with Astro’s leadership team and scale up the existing platform.”
Mr. Mark Humphreys, Managing Director of Astro Offshore, added: “Over the past 15 years, we have built a remarkable trajectory, driven by strategic investments in our OSV fleet and strong customer relationships. Partnering with APSEZ represents a crucial turning point for us. Together, we can accelerate growth, expand our fleet mix, extend our geographical reach, and deliver comprehensive solutions to our clients.”
The transaction is expected to close within a month, pending the fulfillment of operational conditions precedent, with no regulatory approvals required.
About Adani Ports and Special Economic Zone Ltd (APSEZ)
Adani Ports and Special Economic Zone Ltd (APSEZ), a part of the globally diversified Adani Group, has evolved from a port company to an Integrated Transport Utility, providing end-to-end solutions from port gates to customer gates. As India’s largest port developer and operator, APSEZ manages 7 strategically located ports and terminals on the west coast (Mundra, Tuna, Dahej, and Hazira in Gujarat, Mormugao in Goa, Dighi in Maharashtra, and Vizhinjam in Kerala) and 8 ports and terminals on the east coast (Haldia in West Bengal, Dhamra and Gopalpur in Odisha, Gangavaram and Krishnapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu, and Karaikal in Puducherry). These facilities handle 27% of India’s total port volumes, providing comprehensive cargo handling capabilities from coastal and hinterland areas.
The company is also developing a transshipment port at Colombo, Sri Lanka, and operates the Haifa Port in Israel and Container Terminal 2 at Dar Es Salaam Port, Tanzania. The Ports to Logistics Platform, which includes port facilities, integrated logistics capabilities, multimodal logistics parks, Grade A warehouses, and industrial economic zones, positions APSEZ advantageously as India prepares for a global supply chain overhaul. The company’s vision is to become the largest ports and logistics platform in the world within the next decade.
Source Adani Ports