Braemar Acquires Steege Kingston
Tuesday, February 26, 2008
The Board of Braemar Shipping Services plc announced the acquisition of Steege Kingston Partnership Limited (“Steege Kingston”).
Steege Kingston provides specialist loss adjusting and other expert services to the energy (oil and gas), marine, power and other related industrial sectors. It is one of the leading international players in the energy adjusting market, with a particularly strong reputation and presence in the offshore/upstream sector. Its client base covers insurance underwriters, insurance brokers as well as the insured parties in the oil and gas industry itself. First established in 1975, the group now operates from offices in London, Houston, Singapore, Calgary and Mexico City with a total of 62 employees. There are nine shareholders all of whom are employed in the group and will remain so after the change of ownership.
The initial consideration is expected to be £5.5 million to be satisfied by cash from existing resources of £4.2 million and the issue of 306,513 new ordinary shares in Braemar Shipping Services plc. The shares will rank pari passu with existing shares but will be subject to a restriction that they may not be sold within two years of the date of completion. Further consideration is due based on a multiple of the earnings before interest and tax in each of the two years post completion and these amounts will be settled wholly in cash. Total consideration is expected to be in the range £8.0 million - £8.5 million and the maximum consideration payable is capped at £12.0 million. Completion will take place on 3 March 2008.