Abu Dhabi’s ADNOC L&S agrees to acquire maritime firm Navig8
The acquisitions will give the Abu Dhabi maritime logistics firm access to Navig8’s fleet of 32 tankers and global footprint across five continents
Abu Dhabi’s ADNOC Logistics & Services (ADNOC L&S) has agreed to acquire maritime logistics firm Navig8 in a deal valued at $1.49bn, as it seeks to expand its global presence.
Under the deal, ADNOC L&S said it will acquire an 80 per cent stake for $1.04bn, with economic ownership transfer effective from January 1, 2024. The Abu Dhabi maritime logistics firm will buy the remaining 20 per cent stake in 2027 for a deferred consideration of $335m to $450m, according to a bourse filing on Monday.
“This value accretive acquisition marks another major milestone as we deliver on our transformational growth strategy. The addition of Navig8’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,” said Abdulkareem Al Masabi, the CEO of ADNOC L&S.
The acquisitions will give ADNOC L&S access to Navig8’s fleet of 32 tankers and global footprint in 15 cities across five continents.
Navig8 delivered more than $400m (Dhs1.5bn) earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2023, equivalent to 44 per cent of ADNOC L&S’s EBITDA in the same period.
The first full year of investment is projected to boost “earnings per share by at least 20 per cent for ADNOC L&S shareholders”. Following the completion of the deal, the current Navig8 management team will continue to operate the business on a day-to-day basis.
ADNOC L&S revised its growth guidance upwards in Q1 2024 as it looks to invest more than $5bn in energy-related maritime logistics over the medium term, to meet growing demand in the UAE and beyond.
The company’s net profit in the January-March period jumped 34 per cent year-on-year to reach $194m while its revenue increased by 42 per cent to $840m. ADNOC L&S’s $769m initial public offering in 2023 was oversubscribed 163 times.
