MMA to acquire Neptune for $18.5m

24/07/2019 - 15:29

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Fremantle-based MMA Offshore will acquire Neptune Marine Services in a cash-and-scrip deal worth around $18.5 million, as it seeks to expand its services business.

MMA to acquire Neptune for $18.5m
MMA is seeking to expand its subsea service offering.

Fremantle-based marine services company MMA Offshore will acquire Neptune Marine Services for a cash-and-scrip deal worth around $18.5 million, as it seeks to expand its services business.

The deal to buy ASX-listed Neptune - which is controlled by Singapore's MTQ Corporation - comprises of $13.5 million worth of MMA shares and $5 million cash.

Excluding cash and loans, Neptune has net assets of around $18.5 million.

It generated earnings before interest, tax, depreciation and amortisation of $400,000 from revenue of $84 million for the financial year end March 31.

The fiscal year prior its EBITDA was in the red $7.9 million from revenue of $68 million.

Neptune provides inspection, maintenance and repair solutions to the oil and gas, marine and renewable energy industries in Australia, South-East Asia and the UK.

MMA managing director Jeffrey Weber said the acquisition was a key part of the company’s strategy to expand its subsea service offering to existing and new clients.

“Combining MMA’s vessel assets with NMS’s subsea equipment and technical expertise will result in a stronger service offering to both MMA’s and NMS’s existing clients and provide an opportunity for MMA to capture a greater proportion of the value chain,” he said.

“Importantly, the services that NMS provides do not directly compete with our existing clients in the sector and we continue to see these partnerships as a key platform in our subsea strategy going forward.”

Shares in MMA were up 9 per cent to trade at 21 cents each at 2.45pm AEST.

Five years ago its share price was $1.90.

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