MMA Completes Neptune Acquisition
Today MMA completed the acquisition of Neptune Marine Services.
MMA’s Chief Executive Officer, Mr David Ross said “The Neptune acquisition is a key platform in our subsea expansion strategy enabling us to move up the services value chain and improve the returns on our assets. The combination of MMA’s high-quality vessels with NMS’s subsea equipment and technical expertise will result in a stronger service offering to clients. We expect this to translate into increased value for our shareholders as we integrate NMS into our operations”.
The acquisition of the Neptune business represents an important step in MMA’s strategy to expand its subsea service offering and is expected to deliver a number of strategic benefits including:
- Improved service offering to both NMS and MMA clients through the combination of MMA’s vessel assets and NMS subsea capability;
- Increased asset utilisation through the improved combined service offering utilising vessels which can be drawn from MMA’s existing fleet;
- Enhanced Return on Assets through the acquisition of a low capital-intensive business combined with the incremental margin on MMA’s vessels through the provision of additional value-added services to our clients;
- Revenue synergies through incremental margin on MMA vessels, increased utilisation and cross selling of services;
- Cost synergies estimated at approx. $2 million per annum (pre-tax) post completion; and
- With the acquisition at a low point in the market cycle, the combined business is projected to benefit from a recovery in offshore and subsea investment.
To read the full ASX announcement click here.