NEW DELHI: Adani Ports and Special Economic Zone Ltd (APSEZ) has entered into a definitive agreement to acquire 80% stake in Astro, in an all-cash deal for $185 million, implying an enterprise value (EV) of $235 million and EV/FY25E earnings before interest, taxes, depreciation and amortisation (EBITDA) at 4.4 times. The transaction is expected to be value accretive from the first year itself, said APSEZ on Friday.
Incorporated in 2009, Astro is an offshore support vessel (OSV) operator in the Middle East, India, Far East Asia and Africa. Astro owns a fleet of 26 OSVs comprising anchor handling tugs (AHTs), flat top barges, multipurpose support vessels (MPSVs) and workboats and provides vessel management and complementary services. During the year ending April 30, 2024, Astro posted $95 million revenue and $41 million EBITDA. As of April 30, 2024, Astro was net cash positive.
“Astro’s acquisition is part of our road map to become one of the world’s largest marine operators. Astro will add 26 OSVs to current fleet of 142 tugs and dredgers, taking total to 168. The acquisition will give us access to roster of Tier-1 customers, consolidating footprint across Arabian Gulf, Indian subcontinent and Far East Asia,” said Ashwani Gupta, director & CEO, APSEZ.
Astro has a roster of Tier-1 customers including NMDC, McDermott, COOEC, Larsen & Toubro and Saipem. As per APSEZ, Astro leverages an efficient mix of medium to long-term contracts with customers, which allows it to maintain high fleet utilisation and benefit from increasing charter rates, driven by limited supply of OSV fleet globally.