MMA acquires Subcon for $8.4m

MMA Offshore has announced it will buy subsea solutions company Subcon International for $8.4 million.

The marine service provider announced on the ASX today it has entered an agreement for a 100 per cent acquisition of Subcon and all its subsidiaries.

Consideration will be split between $4.2 million in cash and the remaining in MMA shares, which will be priced based on the company's 60-day volume weighted average share price on completion.

The scrip component will be subject to a two-year escrow period.

MMA managing director David Ross said the acquisition was strongly aligned with MMA’s strategy to diversify its service offering sustainably.

“The acquisition enhances our service offering to our existing oil & gas and offshore wind markets by combining our capability, whilst Subcon also bring a number of new solutions to expand our reach into coastal erosion management and the tourism sectors,” he said.

“I am confident that the Subcon business can thrive under MMA’s ownership and look forward to jointly developing and growing the business with the Subcon team.”

Subcon International provides engineered reefs, marine foundation and seabed stabilisation services to the oil and gas, offshore wind, and coastal infrastructure sectors.

The Henderson-based company has an average revenue of $12 million over the past four years.

Its subsidiary Subcon Blue Solutions was involved with the proposed $32 million Busselton Jetty expansion.

Subcon founder Matthew Allen and chief executive Cameron Stirling will continue with the business under MMA’s ownership.

Completion of the transaction is expected to occur in July.

MMA Offshore last traded at 54 cents.