Netherlands-based KOTUG International has entered into an agreement to acquire rival offshore support vessel operator Seaways International, part of a strategy to strengthen its position in the niche floating offshore energy facilities support sector.
The intended acquisition of Seaways marks the largest in KOTUG’s more than 100-year, family-owned history.
Headquartered in Dubai, Seaways International owns and operates a fleet of DP-2 capable anchor handling tugs (AHTs), fast crew supply boats, and cargo barges primarily operating in West Africa.
KOTUG said the intended acquisition is part of a strategy to expand its business in assisting floating energy facilities, such as FSOs (floating, storage and offloading units), FPSOs (floating production, storage and offloading units), FLNGs (floating liquefied natural gas units), FSRUs (floating storage and regasification units) and SPM (single point mooring) terminals. The acquisition will also “further consolidate” KOTUG’s position in a “niche market” that is “expected to grow as new offshore floating projects emerge in response to rising energy demand,” according to KOTUG.
“The acquisition of the renowned Seaways will mark an important milestone for KOTUG. It fits our strategy to expand our (offshore) operations worldwide to meet the increasing demand for offshore support vessels,” said Ard-Jan Kooren, KOTUG’s President and CEO. “Over the last years, we have already heavily invested in offshore support vessels and people. The integration of the services and assets of the two leading companies will bring compelling synergy opportunities, leading to more efficient operations and enhancing significant value creation for our global customers. It strengthens our presence in West Africa and paves the way to enter other emerging markets. Seaways is a reputable company with high-quality services and a great motivated team. The culture and spirit of both companies have many similarities, and we foresee a prosperous future together.”
The acquisition is expected close by end the second half of 2022, subject to regulatory approval.
Captain Ashish Nijhawan, Managing Director of Seaways International said: “I am proud that the Seaways family will become part of the KOTUG global family. Since its incorporation 27 years ago, Seaways has built itself into a reputed offshore maritime company with a proven track record and a knowledgeable and experienced team. KOTUG is an ideal fit for our people and our customers. I feel confident that this acquisition enhances Seaways, her dedicated onshore/offshore staff, and for her to grow into KOTUG’s (new) business areas globally.”