MMA Offshore has entered into an agreement to acquire Subcon International, a Perth-headquartered provider of stabilization, coastal erosion and engineered reef solutions to the oil and gas, offshore wind and coastal infrastructure sectors.
The acquisition is said to be in line with MMA’s purpose and strategy bringing a range of new environmental marine solutions within its capability.
Completion, subject to a number of conditions precedent, is expected to take place in July.
Integration of the business will begin immediately upon completion with the Subcon business to become part of MMA’s Subsea Services division.
The current Subcon team will continue with the business including the company’s founder Matthew Allen and chief executive officer Cameron Stirling.
The purchase consideration, totaling A$8.4 million, will comprise $4.2 million in cash, to be paid from existing cash reserves, with the balance of the consideration to be issued in MMA ordinary shares at the 60-day volume-weighted average share price on completion.
“The acquisition of Subcon is an exciting development for MMA and is strongly aligned with our strategy to extend and diversify our service offering in a sustainable manner,” said MMA’s managing director David Ross.
“The acquisition enhances our service offering to our existing oil & gas and offshore wind markets by combining our capability, whilst Subcon also bring a number of new solutions to expand our reach into coastal erosion management and the tourism sectors.”
MMA anticipates that the purchase will allow it access to new markets with significant potential for growth through a range of innovative solutions including oil and gas decommissioning through Subcon’s rigs to reef offering, attenuating reef systems to combat coastal erosion, scour protection technology and recreational reef developments.
The company also said that it will benefit in terms of enhancement of its sustainability strategy, bringing a range of adjacent environmental marine services such as engineered reefs, wind farm ecology and coastal erosion solutions.
Source: Offshore Energy