Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, has entered into a definitive agreement to acquire an 80% stake in Astro Offshore group for $185 million. The all-cash deal values Astro at an enterprise value of $235 million, implying an EV/FY25E EBITDA multiple of 4.4x.
Astro, incorporated in 2009, is a leading global offshore support vessel (OSV) operator headquartered in Singapore with its main operational office in Dubai. The company owns a diverse, modern fleet of 26 vessels, including 11 Anchor Handling Tugs (AHTs), 10 flat top barges, 2 Multipurpose Support Vessels (MPSVs), and 3 workboats. The average age of Astro’s fleet is 11 years, compared to the industry average of 16 years.
For the year ending April 30, 2024, Astro reported revenue of $95 million and EBITDA of $41 million. The company is projecting strong growth, with estimated FY22-25E CAGR of 39% for revenue and 69% for EBITDA.
This acquisition will enhance APSEZ’s global marine portfolio, adding new Tier-1 customers in the EPC, oil & gas, and renewables industries. It will also strengthen APSEZ’s presence in the Middle East, Far East Asia, India, and Africa.
APSEZ sees potential to expand Astro’s operations into Latin America and further build its presence in Africa and India. The company believes that record low deliveries of OSVs over the next few years will continue to drive charter rates.
The transaction is expected to close within a month, subject to fulfillment of operational conditions precedent. There are no regulatory approvals required for the deal.
