Neptune to buy Ross Deeptech for $25m 09:49, Monday, 29 October 2007
Sydney - Monday - October 29: (RWE Australian Business News) - Neptune Marine Services (ASX: NMS) is to acquire Aberdeen-based Ross Deeptech Initiatives, provider of engineering support services to the subsea oil and gas sector and the offshore renewable energy sector. Ross Deeptech generates annual revenue of almost 10 million pounds and EBITDA of 2.1 million pounds and the business will be immediately earnings per share accretive to Neptune upon settlement. This is expected to be in January 2008. To acquire Ross Deeptech, Neptune proposes to make a one-off payment of $25 million) plus an adjustment for any land not to be acquired, once satisfactory due diligence has been completed and a formal sale agreement is entered into. The acquisition will be funded by way of an equity capital raising, the details of which will be finalised. Ross Deeptech manufactures specialist subsea and offshore oil and gas equipment. It also provides support services for production, drilling, diving, construction and intervention projects in deepwater areas such as west of Shetland, Norway, Gulf of Mexico, West Africa, Canada, Egypt and Australia. The business has a team of 95 people operating in four locations throughout the UK. Customers include some of the world's leading blue chip energy corporations and contractors.
NMS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
