Adnoc expands global presence with acquisition of Navig8 TopCo holdings
(MENAFN) In a move to bolster its fleet and extend its reach into new markets, Adnoc Logistics and Services (Adnoc L&S) has announced its acquisition of global shipping pool operator Navig8 TopCo Holdings. The deal, valued at USD1.04 billion, will see Adnoc L&S take ownership of 80 percent of Navig8, with the transaction set to take effect from January 1, 2024.
As part of the agreement, the remaining 20 percent of Navig8 will be acquired by Adnoc L&S in 2027, with an additional consideration ranging from USD335 million to USD450 million.
This acquisition forms a pivotal component of Adnoc L&S's ambitious USD5 billion investment program, signaling a significant step forward in its transformational growth strategy. Capt Abdulkareem Al Masabi, CEO of Adnoc L&S, emphasized the strategic significance of the acquisition, stating that it will augment the company's geographical footprint and service offerings by integrating Navig8's extensive presence across 15 international cities and its fleet of 32 modern tankers.
Adnoc L&S anticipates immediate value accretion from the acquisition, with the first full year of investment projected to boost earnings per share by at least 20 percent. Navig8's robust performance, evidenced by over USD400 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2023, equivalent to 44 percent of Adnoc L&S's core earnings during the same period, underscores the potential synergies and financial benefits expected from the transaction.
Moreover, Adnoc L&S anticipates substantial cost savings exceeding USD100 million annually through optimization measures, including the reduction of technical management and fuel costs. Despite the acquisition, Navig8 will maintain its autonomy as an independent entity within the Adnoc subsidiary, ensuring continuity in its operations and service delivery.
The acquisition of Navig8 underscores Adnoc L&S's commitment to strengthening its position in the global maritime logistics sector, positioning itself for sustained growth and enhanced value creation in the years ahead.
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