Wednesday, November 25, 2020

Two Specialist Offshore and Maritime Consultancies to Become One

Global Reach for Engineering, Design and Insurance Services
Shipping News Feature

NORWAY – UK – WORLDWIDE – AqualisBraemar ASA, an energy, marine and insurance consultancy group headquartered in Oslo, has entered into an agreement to acquire 100% of the shares in the London based LOC Group which comprises four specialist companies, all linked to the maritime and offshore sectors.

The LOC Group, founded in 1979, is itself an international marine and engineering consulting firm that operates under the four brand names LOC, Innosea, Longitude and JLA (John LeBourhis). LOC operates in the shipping industry, providing loss prevention and loss management services, as well as marine and engineering consultancy services, while Longitude provides independent engineering and design consulting to the shipping industry.

Houston based JLA delivers rig approval services for offshore construction, drilling and production operations, whilst Innosea has French roots and is an independent engineering firm specialising in offshore renewables. AqualisBraemar has entered into an agreement to acquire 100% 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.

Following completion of the acquisition, which commands a purchase price combination of $20.2 million net cash consideration plus conditional warrants in AqualisBraemar, the combined group will be a global independent offshore energy and marine consultancy firm with a total of 880 employees in 85 offices in 39 countries all over the world.

Closing of the acquisition is expected on or around 21 December 2020. The transaction is subject to approval of an equity issue by an extraordinary general meeting (EGM) in AqualisBraemar. The EGM will be held on or about 14 December 2020. David Wells, CEO of AqualisBraemar, said:

“Our strategy is clear, we want to leverage on our position within the shipping industry to support the global energy transition. LOC Group, with its strong and highly complementary footprint within the same industries, is a perfect fit for this strategy. Our complementary geographical footprint reiterates how this acquisition will allow us to provide clients in the shipping industry with even better local expertise and swifter response times regardless of where in the world they are.

”We are combining two well-run businesses to create an even more complete service provider. You would have to look very, very hard to find a better strategic fit than AqualisBraemar and LOC Group. This is a key reason for why key managers have decided to continue with the combined group.”

AqualisBraemar and LOC Group will be trading separately for up to six months following completion of the transaction. LOC Group’s CEO, Dr R. V. Ahilan, will continue in the joint company in a newly created role as chief energy transition officer, supporting the group’s ambition of 50% of revenues coming from renewables and other sustainability and CO2-reducing activities by 2025. He will also join the combined group’s executive management team. He commented:

“Reducing the carbon intensity of the shipping and offshore oil and gas industries are also key to achieving the energy transition the world so desperately needs. We will continue to support all these industries to help make this energy transition happen. The consulting space within the shipping industry is ripe for consolidation. Our customers’ needs are rapidly evolving and we believe our joint increased scale and wider global footprint will help us cater for those requirements.”