Adani Ports and Special Economic Zone Ltd (APSEZ) has announced a strategic move with the acquisition of an 80% stake in Astro Offshore Group for $185 million. This acquisition, finalised on August 30, 2024, is part of APSEZ’s roadmap to becoming one of the world’s largest marine operators.

The transaction implies an enterprise value of $235 million for Astro, with an EV/EBITDA multiple of 4.4x based on FY25 estimates.

Astro Offshore, a leading global operator of Offshore Support Vessels (OSVs), brings a diverse and modern fleet of 26 vessels, including Anchor Handling Tugs, flat top barges, Multipurpose Support Vessels, and workboats. The acquisition significantly bolsters APSEZ’s marine capabilities, expanding its presence across the Middle East, Far East Asia, India, and Africa.

The deal is strategically significant as Astro Offshore has a strong roster of Tier-1 customers in the Engineering, Procurement, and Construction (EPC), oil and gas, and renewables sectors.

These include major industry players like NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem. Astro’s experience in supporting offshore construction, maintenance, and drilling operations aligns well with APSEZ’s long-term growth strategy.

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Astro’s acquisition adds 26 vessels to APSEZ’s existing fleet, taking the total count to 168. This acquisition will further consolidate APSEZ’s footprint across key markets and allow it to leverage Astro’s established relationships and operational expertise.

The transaction is expected to be accretive from the first year itself, with Astro having reported strong financials, including $95 million in revenue and $41 million in EBITDA for the year ending April 2024.

Ashwani Gupta, Whole-time Director & CEO of APSEZ, highlighted that this acquisition is a critical step in APSEZ’s journey to becoming a global leader in marine services. “Astro will add significant value to our marine portfolio, and we look forward to working closely with their leadership team to scale up the current platform,” Gupta stated.

Mark Humphreys, Managing Director of Astro Offshore, expressed optimism about the partnership, noting that it represents a critical inflection point for Astro. “Together, we can accelerate growth, expand our geographical footprint, and deliver more end-to-end solutions to our customers,” Humphreys said.

The transaction, which does not require regulatory approvals, is expected to close within a month, subject to operational conditions precedent.