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Renaissance plans major
acquisition
Acquisition to create one
of the Top Ten offshore vessel operators worldwide
Renaissance Services SAOG (RENAISSANCE) through its 100% owned
subsidiary Topaz Energy and Marine Ltd. Dubai (TOPAZ) has
agreed to acquire the entire shareholding of BUE Marine
Limited, UK (BUE). Post-acquisition, the combined marine
business of BUE and TOPAZ will rank amongst the top 10
offshore support vessel operators in the world with a
geographical footprint in the Caspian, S.E. Asia, the Middle
East, and West Africa.
BUE has its headquarters in the UK and currently operates
primarily in the Caspian region. Established in 1991, BUE has
historically provided and managed marine support vessels for
the offshore oil & gas sector in the North Sea and the
Caspian. In recent years, BUE has invested heavily and now
operates a diversified fleet of 42 vessels comprising supply
vessels, anchor-handling tugs, accommodation vessels,
icebreakers, work barges, and utility boats. As part of its
ambitious fleet expansion program, it has another 19 vessels
and barges under construction in shipyards with further orders
to follow. The enterprise value of the company including the
current new build programme underway is in the region of USD
150 Million.
TOPAZ is also in the offshore support vessel business and
operates in the Middle East, S.E. Asia, and West Africa. The
BUE and TOPAZ customer base comprises almost all the leading
international oil & gas companies such as Shell, BP, Total,
Statoil, Agip etc. with both companies having established a
reputation as quality fleet operators.
The BUE group employs over 600 people. Key senior executives
including their CEO will continue with the enlarged group. The
headquarters of the combined TOPAZ and BUE business will be
based in Dubai, given its logistical advantages and proximity
to major offshore markets.
RENAISSANCE acquired TOPAZ earlier this year to create one of
the largest services company in Oman with a diverse group of
businesses. Based on the audited results, the combined
turnover of the 2 companies for the year ended December 2004
was over USD 225 Million with Net Profit in excess of USD 40
Million. A key driver for the merger was to create a company,
which would be able to grow rapidly in its principal
businesses through acquisitions. BUE fits in with this plan
and will contribute approximately another USD 100M of annual
turnover to the group with commensurate profitability. From a
strategic viewpoint, BUE is operating in a market that does
not overlap with the current operations of TOPAZ, with
substantial potential for further growth in this region for
other businesses within the RENAISSANCE group. Leading local
and international banks will support this transaction.
The transaction is at an advanced stage and closure is
expected within the next few weeks. |
