Adani Ports and Special Economic Zone (APSEZ), a ports and logistics company, has entered into a definitive agreement to acquire an 80% stake in Astro Offshore, in an all-cash deal for ₹185 million, implying an EV (enterprise value) of USD 235 million and EV / FY25E EBITDA at 4.4x. The transaction is expected to be value accretive from the first year itself.
Incorporated in 2009, Astro is an OSV operator in the Middle East, India, Far East Asia and Africa. Astro owns a fleet of 26 OSVs comprising of Anchor Handling Tugs (AHTs), flat top barges, Multipurpose Support Vessels (MPSVs) and workboats and provides vessel management and complementary services. During the year ending 30 April 2024, Astro posted $95 million in revenue and ₹41 million EBITDA. As of 30 April 2024, Astro was net cash positive.
“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. The acquisition will also give us access to an impressive roster of Tier-1 customers while further consolidating our footprint across the Arabian Gulf, the Indian subcontinent and Far East Asia. We look forward to working closely with Astro’s leadership team and scaling up the current platform,” said Ashwani Gupta, full-time director & CEO, APSEZ.
“Over the past 15 years, we have created an impressive company trajectory, driven by strategic investments in our OSV fleet and deep relationships with our customers. 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,” said Mr Mark Humphreys, Managing Director, Astro Offshore.
There are no regulatory approvals required and the transaction is expected to close within a month, subject to fulfilment of operational conditions precedent.
Astro has an impressive roster of Tier-1 customers including NMDC, McDermott, COOEC, Larsen & Toubro and Saipem. Astro is a key player in the offshore construction & fabrication and offshore transportation markets. Astro’s 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 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 the limited supply of OSV fleet globally.
Adani Ports and Special Economic Zone (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 its port gate to customer gate. It has 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), representing 27% of the country’s total port volumes, thus providing capabilities to handle vast amounts of cargo from both coastal areas and the hinterland.
The company is also developing a transhipment port in 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 comprising port facilities, and integrated logistics capabilities, including multimodal logistics parks, Grade A warehouses, and industrial economic zones.
