Marine services group swoops in two acquisitions
Marine services firm James Fisher today announced the acquisition of the entire share capital of Rotherham-based Martek Holdings and, separately, the acquisition of 60% of the share capital of a Saudi Arabian business, for Marine Contracting.
The Cumbria-based group said the Martek deal is worth £9m in cash, inititally, with a potential further consideration of up to £1m subject to a profit target for the year ending February 28, 2020.
Martek was founded in Rotherham in 2000 and provides a range of innovative safety and calibration systems and products to the marine sector.
Unaudited profit after tax of Martek for the year ended February 28, 2018, was £1.8m and gross assets were £7.2m.
James Fisher chief executive Nick Henry said: “The acquisition of Martek further enhances James Fisher’s capability to offer innovative solutions to the marine sector and provides a proven channel to market for the group’s adjacent products and services.
“We are very pleased to welcome Martek’s team to the group and look forward to a successful future together.”
In a separate deal, James Fisher has acquired 60% of the share capital of MSMC for an initial consideration of £4.1m in cash, with potential further consideration of up to £4.5m subject to profit targets for the year ending December 31, 2019.
MSMC, which was established in 2010 by Abdullah Akbar Natheer and is headquartered in Al Khobar, Kingdom of Saudi Arabia, provides near shore marine construction and maintenance services.
Audited profit after tax of MSMC for the year ended December 31, 2017 was £1.4m, and unaudited gross assets were £10m.
The 40% minority interest of MSMC has been retained by Mr Natheer who James Fisher will work with to grow MSMC and secure a leadership position in its chosen markets.
EC Hambro Rabben & Partners acted as corporate adviser to James Fisher and Sons.
The Manchester office of EY, led by Richard Harding, with Steven Kingham, provided financial and tax due diligence to James Fisher.