NORWEGIAN supply shipping company DOF Group ASA announced it will acquire Maersk Supply Service, intending to enhance its position as a major integrated offshore services provider.
Financed through a mixture of cash and shares, the approximate value of the deal totalled US$1.12 billion, resulting in MSS holding 25 percent of DOF’s share capital post-transaction.
The combined entity will operate under the DOF Group name, and following the acquisition will comprise a workforce of more than 5400 employees and a total of 78 offshore and subsea vessels, 65 of which are owned.
In the acquisition announcement, DOF highlighted both companies current operations as strategically and geographically complementary. DOF stated their intention to strengthen the group’s position in the oil and gas market, as well as the growing offshore wind market.
The acquisition brings an immediate fleet expansion for DOF without time required for newbuilds, with MSS at the time of transaction under ownership of 22 subsea and anchor handling tug supply vessels.
With an expected transaction closing date for the fourth quarter of 2024, the joining of DOF and MSS will bring a combined market cap of approximately US2.3 billion (as of June 2024), creating one of the largest oil service companies on the Oslo Stock Exchange.
CEO of DOF, Mons Aase said, “The announced transaction today marks a strategic milestone for the DOF Group, driven by a strong industry rationale and a shared vision with A.P.Moller Holding, who will indirectly become a major shareholder”.
“We will enhance the customer experience through increased scale, global reach, and industry-leading services, combining the strong capabilities and decades of experience of DOF and Maersk Supply Service.”
Christian Ingerslev, CEO of MSS detailed Maersk’s rationale for the acquisition, “This long-term solution for Maersk Supply Service’s OSV activities together with DOF Group is founded on our shared values and unwavering commitment to safety and efficiency of our operations”.
“The combination of our talented employees, modern fleet and geographical spread will create a leading offshore service provider characterized by unique scale and a wide range of product and service offerings across key markets for the benefit of our customers.”
Certain assets will be transferred from the MSS structure and not acquired by DOF, including Maersk’s offshore wind installation business, and MSS’ operations in Brazil. DOF mentioned in the announcement that it will finance the transaction with a debt facility of US500 million and an equity raise of US125 million.
