Offshore engineering consultant Aqualis has entered into an agreement to acquire the marine, adjusting, and offshore business lines from the London-based Braemar Technical Services (BTS), a division of Braemar Shipping Services, in exchange for an equity stake in the group.
The combined company, to be renamed AqualisBraemar, will focus on offshore wind and other marine industries, said Aqualis ASA, the parent company of Offshore Wind Consultants and Aqualis Offshore.
The consideration in the transaction comprises a combination of Aqualis shares and performance-based warrants, making Braemar the largest shareholder in Aqualis.
Braemar will become the largest shareholder in Aqualis, with an initial shareholding of approximately 26%, potentially increasing to 33% depending on business performance
The combined company’s revenue for the twelve months ended December 31, 2018 was approximately USD 76 million, with Aqualis and BTS representing approximately USD 36 million and USD 40 million respectively
The combined company’s executive management will consist of CEO David Wells (Aqualis), CFO Kim Boman (Aqualis), Group and Offshore COO Reuben Segal (Aqualis) and COO Insurance Services Grant Smith (Braemar), with other senior divisional management selected from top talent within both companies. The head office will be located in London.
David Wells, CEO of Aqualis, said: “Aqualis and Braemar Technical Services are two of the leading marine consulting companies globally. By joining forces, we create a more sustainable business with strong platform for international growth. We will be better able to support our clients’ growth by offering our joint and enhanced leading expertise. With our larger scale, more resources and our engaged and talented people, we will improve our ability to meet our clients’ needs globally”
James Kidwell, CEO of Braemar, said: “We are delighted to be announcing the sale of substantially all of Braemar’s Technical division to Aqualis ASA in exchange for an equity stake in the enlarged group. Our respective businesses fit well together and the combination will create a market leading position in Offshore, Marine, Adjusting and Renewables services with global coverage which will enable the stronger combined business to unlock significant revenue and cost synergies."