ABU DHABI: ADNOC Logistics and Services Plc (ADNOC L and S) today announced an agreement to acquire Navig8 TopCo Holdings Inc. (Navig8), an international shipping pool operator and commercial management company with an owned fleet of 32 modern tankers and a presence in 15 cities across five continents.
The agreement, which is subject to customary regulatory approvals, will accelerate the company’s global expansion as it progresses towards its medium-term strategic growth investment target, just one year after its listing.
Under the terms of the agreement, ADNOC L and S will acquire 80% of Navig8 for $1.04 billion (AED3.8 billion) with economic ownership transfer effective from 1st January 2024.
It will further acquire the remaining 20% ownership in 2027 for a deferred consideration of $335 million to $450 million (AED1.2 billion to AED1.7 billion).
The acquisition will be immediately value accretive, aligning with the ADNOC L and S transformational growth strategy and investment target. The first full yea
r of investment is projected to boost earnings per share by at least 20% for ADNOC L and S shareholders.
Moreover, Navig8 delivered over $400 million (AED1.5 billion) EBITDA in 2023, equivalent to 44% of ADNOC L and S’ EBITDA in the same period.
ADNOC L and S will unlock significant value through cost-saving synergies, with savings targets of over $100 million (AED375 million) per annum already identified through optimising technical management costs and bunker spend.
Navig8’s global footprint in 15 cities across five continents and its owned fleet of 32 modern tankers will greatly enhance ADNOC L and S’ international profile and expand its blue-chip customer base.
ADNOC L and S’ service offering will include pooling, commercial management, bunker trading, technical management and ESG-focused digital solutions.
Captain Abdulkareem Al Masabi, CEO of ADNOC L and S, said, ‘This value accretive acquisition marks another major milestone as we deliver on our transformational growth strategy. The addition of Na
vig8’s presence in 15 international cities, a fleet of tankers and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company.’
Following the successful completion of the acquisition, the current Navig8 management team will continue to operate the business on a day-to-day basis, while maintaining its current operations under the existing Navig8 brand, to ensure continued strength in business performance, while leveraging the complementary benefits of its partnership with ADNOC L and S.
Nicolas Busch, CEO of Navig8, stated, ‘Navig8 is excited by ADNOC L and S’ investment into the company, which is a great credit to the hard work and dedication of the Navig8 global team over the last 17 years making this partnership possible. The opportunity to work collaboratively with ADNOC L and S and the wider ADNOC Group brings together their extensive knowledge of energy markets with Navig8’s unique presence
in the maritime sector. This will allow us to enhance the service and value we deliver to both our customers and the Navig8 group.’
Source: Emirates News Agency