• Adani Ports has acquired an 80% stake in Astro Offshore, a global offshore support vessel operator.
• The acquisition is part of APSEZ's strategy to become one of the world's largest marine operators.
• Astro Offshore's impressive roster of Tier-1 customers and its deep experience in offshore construction will enhance APSEZ's global marine portfolio.
• The deal, valued at $185 million, is expected to close within a month and will further consolidate APSEZ's position as a leading marine operator.

Adani Ports and Special Economic Zone (APSEZ) has made a significant stride in strengthening its marine portfolio. The company announced the acquisition of an 80% stake in Astro Offshore, a global offshore support vessel operator. The all-cash deal, valued at $185 million, is expected to be value accretive from the first year itself, according to the flagship company of the Adani Group.

Astro Offshore, established in 2009, is a leading global offshore support vessel (OSV) operator. Its operations span across the Middle East, India, Far East Asia, and Africa. The company boasts a fleet of 26 OSVs, including anchor handling tugs (AHTs), flat top barges, multipurpose support vessels (MPSVs), and workboats, and also provides vessel management and complementary services.

The acquisition of Astro is a strategic move by APSEZ, aimed at becoming one of the world's largest marine operators. The addition of 26 OSVs to APSEZ's current fleet of 142 tugs and dredgers will take the total count to 168. This acquisition is expected to enhance APSEZ's global marine portfolio and add new Tier-1 customers.

Astro Offshore's Impressive Roster and Strategic Value

Ashwani Gupta, Whole-Time Director and CEO, APSEZ, highlighted the strategic value of 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, taking the total count to 168, he said. Gupta also emphasized the access to an impressive roster of Tier-1 customers and further consolidation of APSEZ's footprint across the Arabian Gulf, the Indian subcontinent, and Far East Asia.

Astro has an impressive roster of Tier-1 customers, including NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem. The company is a key player in the offshore construction & fabrication and offshore transportation markets. Its pre-qualified status with major global EPC contractors and the ability to deliver a variety of ocean-going vessels has enabled it to build a roster of Tier-1 customers in the oil & gas industry.

Astro's deep experience in supporting the construction and maintenance of offshore platforms, oil & gas fields, and subsea facilities allows it to deliver cutting-edge services to clients in the offshore exploration & drilling markets. Astro's vessels also support multiple operations for leading international dredging companies, including large offshore construction and land reclamation projects.

Astro Offshore's Financial Performance and Future Prospects

Astro leverages an efficient mix of medium to long-term contracts with customers, which allows it to maintain high fleet utilization and benefit from increasing charter rates, driven by limited supply of OSV fleet globally. During the year ending April 30, 2024, Astro posted $95 million revenue and $41 million EBITDA, and was net cash positive.

Mark Humphreys, Managing Director, Astro Offshore, spoke about the company's impressive trajectory over the past 15 years, driven by strategic investments in its OSV fleet and deep relationships with its customers. He added, 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.

The transaction, implying an enterprise value of $235 million, does not require any regulatory approvals and is expected to close within a month, subject to the fulfillment of operational conditions precedent. The existing promoters of Astro will hold the remaining 20% stake.

Adani Ports is the largest port developer and operator in India with seven strategically located ports and terminals on the west coast and eight ports and terminals on the east coast. This acquisition is a significant step in APSEZ's growth strategy and is expected to further consolidate its position as a leading marine operator.

As the acquisition of Astro Offshore by Adani Ports is a strategic move that is expected to enhance its marine portfolio, expand its global footprint, and add new Tier-1 customers, the deal is to consolidate itself in the marine industry, driven by the need for scale, diversity, and geographical reach. It also underscores the importance of strategic acquisitions in the growth and expansion of companies in the marine industry.