India’s largest private ports and logistics company, Adani Ports and Special Economic Zone (APSEZ) has, through its subsidiary The Adani Harbour Services, struck a deal to acquire leading compatriot third-party marine services provider Ocean Sparkle Limited (OSL) for Rs 1530 crore ($200.6m).
OSL is valued at an enterprise value of around $223m with $39m of free cash in the company, APSEZ said. Established in 1995 by a group of marine technocrats with P Jairaj Kumar as the chairman and managing director, OSL’s main activities include towage, pilotage, and dredging with an asset base of 94 owned vessels and 13 third-party-owned vessels. Kumar will continue as the chairman of the OSL board.
The company has a presence in all the major ports, 15 minor ports, and three LNG terminals in India. It also has operations in Oman, Saudi Arabia, Sri Lanka, Qatar, Yemen and Africa and is expected to have a revenue of around $79m.
“Given the synergies of OSL and Adani Harbour Services, the consolidated business is likely to double in five years with improved margins, thereby creating significant value for APSEZ’s shareholders,” said Karan Adani, CEO of APSEZ. “This acquisition not only provides APSEZ a significant share of India’s marine services market but also provides us a platform for building a presence in other countries, thereby facilitating APSEZ’s journey towards becoming the largest port operator globally by 2030 and largest integrated transport utility in India.”
