Adani Ports and Special Economic Zone (APSEZ) on Friday announced that it has entered into a definitive agreement to acquire 80% stake in Astro in an all-cash deal for $185 million, implying an EV of $235 million and EV/FY25E EBITDA at 4.4x.
APSEZ is India’s largest ports and logistics company and a part of the globally diversified Adani Group. The company stated in a regulatory filing that the deal is anticipated to add value from the first year itself.
On the announcement, APSEZ’s Whole-time Director & CEO Ashwani Gupta said, “Astro’s acquisition is part of our roadmap to becoming one of the world’s largest marine operators. Astro will add 26 OSVs to our current fleet of 142 tugs and dredgers, taking the total count to 168. The acquisition will also give us access to an impressive roster of Tier-1 customers while further consolidating our footprint across the Arabian Gulf, the Indian subcontinent and Far East Asia. We look forward to working closely with Astro’s leadership team and scaling up the current platform.”
Astro is operating 26 OSVs, including workboats, flat-top barges, Multipurpose Support Vessels (MPSVs) and Anchor Handling Tugs (AHTs). The company is a global operator of vessel management and support services. Its operations are based in the Middle East, India, Far East Asia and Africa. During the year ending April 30, 2024, Astro reported $95 million in revenue and $41 million in EBITDA.
Astro is a major participant in the offshore fabrication and construction as well as the offshore transportation industry, including NMDC, McDermott, COOEC, Larsen & Toubro and Saipem among its Tier-1 clients.
Mark Humphreys, Managing Director, Astro Offshore, said, “Over the past 15 years, we have created an impressive company trajectory, driven by strategic investments in our OSV fleet and deep relationships with our customers. This partnership with APSEZ represents a critical inflection point for us. Together, we can accelerate growth to add further scale and diversity to our fleet mix, expand our geographical footprint and deliver more end-to-end solutions to our customers.”
Adani Ports stated that the acquisition is expected to conclude within a month, subject to the fulfilment of operational conditions precedent and that no regulatory clearances are required.
Also Read: Adani Ports & SEZ Welcomes First Mother Ship at Vizhinjam Port
