Dubai-based DP World has completed the takeover of Topaz Energy and Marine Limited in a deal worth $1.08 billion.
DP World confirmed the purchase from Oman-listed Renaissance Services SAOG and Standard Chartered Private Equity, in a bourse statement.
Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “In recent years, we have been investing selectively in the marine logistics sector in companies with high revenue visibility, consistent track record and strong customer relationships, and this acquisition complements the operations of our P&O Maritime Services (POMS), which maintains over 300 vessels globally.”
Topaz is a leading international provider of critical marine logistics and solutions to the global energy industry. The company operates a fleet of 117 vessels, predominantly in the Caspian Sea, MENA, and West Africa regions.
The company also has long-standing relationships with many of the leading international and national oil companies, including BP, Chevron, Dragon Oil, Dubai Petroleum, ExxonMobil, Saudi Aramco and Tengizchevroil.
Topaz reported consolidated 2018 revenues of $349m and EBITDA of $190 million. As of March 31 2019 it had a contract backlog of $1.6 billion.
According to the bourse statement: “The acquisition is expected to be earnings and margins accretive from the first full year of consolidation and is expected to meet DP World’s return targets.”
The transaction is subject to customary completion conditions and regulatory approvals and is expected to close in the second half of 2019.
Bin Sulayem added: “This transaction is in line with our strategy to grow our presence in marine logistics and become a solutions provider to end customers. Importantly, we expect the acquisition to accelerate returns and drive value for all stakeholders.”For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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