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Aqualis and Braemar Technical Services to join forces

Tuesday, 14 May 2019 | 12:00

Aqualis ASA, the parent of marine and offshore engineering consultancy Aqualis Offshore, entered into an agreement to acquire the Marine, Adjusting, and Offshore business lines from Braemar Shipping Services Plc.

The combined company, to be renamed AqualisBraemar ASA, will be a leading marine, adjusting, offshore and renewables consultancy with a broadened service offering across all major basins.

“Through this transaction, existing and potential clients of Aqualis Offshore and Braemar Technical Services will be able to benefit from gaining access to new capabilities and broader suite of services on offer as well as increased manpower and geographical footprint to enable even quicker and more cost-efficient operational support at or in close proximity to our clients’ offices and assets,” says David Wells, CEO of Aqualis Offshore and Oslo-listed energy consultancy group Aqualis ASA.

Braemar Technical Services is the global market leader in both the marine and adjusting segments. Within the marine segment, Braemar Technical Services offer a worldwide emergency casualty, accident or incident response and international marine survey services. Within the adjusting segment, the company provides services such as loss adjusting, risk assessment, legal/expert witness and construction dispute resolution to the international insurance and reinsurance markets.

Aqualis Offshore is a specialised offshore marine and engineering consultancy firm, focusing on the shallow and deep-water offshore segments of the oil and gas industry together with renewables The company does have increasing focus on offering consultancy services to the maritime and shipping industries . Aqualis Offshore does not currently have operations in the adjusting segment.

The two companies are highly complementary in terms of geographical footprint, with offices all over the world.

The combined company’s head office will be located in London, UK. David Wells will continue as CEO of the group.

“By joining forces, we create a more sustainable business with strong platform for international growth. We will be better able to support our clients’ growth by offering our joint and enhanced leading expertise. With our larger scale, more resources and our engaged and talented people, we will improve our ability to meet our clients’ needs globally,” adds David Wells.

The combined company will be divided into four divisions, each with a strong presence in their respective markets: Marine, Adjusting, Offshore and Renewables. It will have a total of more than 430 full-time equivalent employees globally. The combined company’s revenue for the twelve months ended December 31, 2018 was approximately USD 76 million, with Aqualis and Braemar Technical Services representing approximately USD 36 million and USD 40 million respectively.

“We are delighted to be announcing the sale of substantially all of Braemar’s Technical division to Aqualis ASA in exchange for an equity stake in the enlarged group. Our respective businesses fit well together and the combination will create a market leading position in Offshore, Marine, Adjusting and Renewables services with global coverage which will enable the stronger combined business to unlock significant revenue and cost synergies. We strongly believe that the enlarged Aqualis group, which will retain the Braemar name and trade as AqualisBraemar, will bring numerous benefits and opportunities to both clients and employees going forward,” says James Kidwell, CEO of Braemar.

“As the largest shareholder in AqualisBraemar we look forward to developing the business with the management team, which has an excellent track record of growing businesses in these sectors,” Kidwell adds.

The transaction

The consideration in the transaction comprises a combination of Aqualis shares and performance-based warrants, making Braemar the largest shareholder in Aqualis with an initial shareholding of approximately 26%, potentially increasing to 33% depending on business performance.

Completion of the transaction is subject to the approval by Aqualis’ shareholders at the Annual General Meeting, expected to be held on or about 11 June 2019. The transaction is not subject to any regulatory approvals. Given approval at the AGM, the transaction is expected to close by the end of June 2019.
Source: Aqualis ASA

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