Adani Harbour Services, a unit of Adani Ports and Special Economic Zone (APSEZ), has signed a definitive agreement to acquire India-based third-party marine services provider Ocean Sparkle (OSL) for Rs15.3bn ($200m).
Founded in 1995 by a group of marine technocrats, OSL provides towage, pilotage and dredging services.
The company has 94 owned vessels and 13 third-party-owned vessels.
According to Adani, the marine services company has an enterprise value of Rs17bn ($222m) and Rs3bn ($39.2m) of free cash.
APSEZ CEO and whole-time director Karan Adani said: “Given the synergies of OSL and Adani Harbour Services, the consolidated business is likely to double in five years with improved margins, thereby creating significant value for APSEZ’s shareholders.
“This acquisition not only provides APSEZ a significant share of India’s marine services market but also provides us a platform for building presence in other countries, thereby facilitating APSEZ’s journey towards becoming the largest port operator globally by 2030 and largest integrated transport utility in India.”
OSL has operations in all major ports in the country, as well as in 15 minor ports and three liquefied natural gas (LNG) terminals.
With 1,800 employees across India, the company also carries out operations in Oman, Saudi Arabia, Sri Lanka, Qatar, Yemen and Africa.
OSL has contracts ranging from five years to 20 years with its existing customers.
In FY22, the company is anticipated to generate revenue of Rs6bn ($78.4m), earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs3.1bn (40.5m), and profit after tax (PAT) of Rs1.35bn ($17.6m).
In March last year, APSEZ announced plans to purchase a 58.1% stake in Gangavaram Port Limited (GPL) in the Indian state of Andhra Pradesh.