Neptune Marine Services completes acquisition of STS

Neptune Marine Services Ltd has completed the acquisition of Aberdeen-based Submersible Technology Services (Holdings) Ltd (STS), a provider of ROV and survey support services. Neptune acquired 100 per cent of the issued capital of STS for £16 million (plus an adjustment for STS working capital, less debt at completion of the acquisition), with added conditional consideration based on STS’s EBITDA performance for the calendar year 2009. Approximately 95 per cent of the acquisition price was paid in cash, with the balance via the issue of 1,530,811 fully paid ordinary shares.

The majority of funding for the acquisition was via an extension of Neptune’s existing facilities with the National Australia Bank, with the balance from cash reserves. Under the terms of the agreement, STS senior managers, Bill Rodger and Barry Stewart, and all full time employees will remain to help drive future growth and development.

Neptune’s managing director and chief executive officer, Christian Lange, said the acquisition would immediately contribute to the group’s expansion into the UK and other major international markets, particularly in the provision of ROV services. “At the time of acquisition, the STS fleet of inspection- and work-class ROVs was operating throughout Europe, Asia, North America and the Middle East,” he explained.

“With more than 30 years’ industry experience and offices in Aberdeen, Bahrain and Singapore, STS will accelerate Neptune’s scale and geographic spread in the ROV market, enabling us to provide a full range of support services across exploration drilling, pipeline and cable survey/inspection, subsea construction, and platform inspection and maintenance.

“The addition of STS will also complement the specialised subsea capabilities of our established UK businesses, will provide global opportunities, will add to our growing blue chip customer base and will significantly boost Neptune’s presence in Aberdeen,” he added. OSJ