AqualisBraemar Completes LOC Takeover. Targets 50% of Revenues from Renewables
Offshore energy and marine consultancy AqualisBraemar has completed the acquisition of the marine and engineering consulting firm LOC Group (London Offshore Consultants).
Oslo-listed AqualisBraemar announced the completion of the transaction on Tuesday, saying the acquisition created "a leading global independent offshore energy and marine consultancy."
As part of the transaction, originally announced on November 23, AqualisBraemar acquired 100 percent of the shares in Neptune Midco 1 Limited from the ultimate parent company of the LOC Group, LOC Group Holdings Limited, the shareholders of which include pan-European investment group Bridgepoint and key employees of LOC.
The purchase price consideration was a USD 20.2 million cash consideration plus two million conditional warrants in AqualisBraemar.
LOC Group, founded in 1979, is an international marine and engineering consulting firm that operates under four brand names: LOC, Innosea, Longitude and JLA (John LeBourhis). Similar to AqualisBraemar, LOC Group operates within the shipping, oil and gas, and renewables sectors.
David Wells, CEO AqualisBraemar said: "This is a great day for both AqualisBraemar and our clients. We effectively double the size of our group, which will benefit our customers through greater capacity, improved geographical footprint, and a much more complete skills base. With both companies having similar profiles it also allows us to maintain our stated ambitious growth targets in support of the global energy transition,”
The combined group will have a total of 880 employees in 67 offices in 39 countries.
By joining the fast-growing specialist renewable entities of AqualisBraemar’s offshore wind consultancy firm OWC and LOC Group’s Innosea and other renewable focused units, the combined group will double its size within renewables, AqualisBraemar said.
"The group’s strategy is to grow through continued expansion in the rapidly growing offshore renewables industry, and leverage on its position within shipping and oil and gas markets, to support the global energy transition," it said.
“Our objective is that 50 percent of our revenues should come from the renewables sector and other sustainability and CO2-reducing activities in 2025. Reducing the carbon intensity of the offshore oil and gas and shipping industries are also key to achieving the energy transition the world requires. We will continue to support all these industries to help make this energy transition happen,” says David Wells.
AqualisBraemar and LOC Group will be trading separately until the latter part of April 2021. The parent company of the group, AqualisBraemar ASA, will change its name to AqualisBraemar LOC ASA with effect from Tuesday.