ADNOC Logistics & Services to acquire Navig8

ADNOC Logistics & Services to acquire Navig8

ADNOC Logistics and Services Plc, a global energy maritime logistics company, has announced an agreement to acquire Navig8 TopCo Holdings Inc., an international shipping pool operator and commercial management company. Navig8 boasts an owned fleet of 32 modern tankers and a presence in 15 cities across five continents.

This agreement, subject to customary regulatory approvals, marks a significant milestone in ADNOC L&S’s global expansion, aligning with its medium-term strategic growth investment target just one year after its public listing.

Agreement Terms: ADNOC L&S will acquire 80 percent of Navig8 for $1.04 billion (AED3.8 billion), with economic ownership transfer effective from January 1, 2024. The remaining 20 percent ownership will be acquired in 2027 for a deferred consideration of $335 million to $450 million.

Immediate Value Accretion: The acquisition is immediately value accretive, supporting ADNOC L&S’s transformational growth strategy. The first full year of investment is projected to boost earnings per share by at least 20 percent for ADNOC L&S shareholders. Navig8 delivered over $400 million EBITDA in 2023, which is equivalent to 44 percent of ADNOC L&S’s EBITDA for the same period.

Synergies: ADNOC L&S will unlock significant value through cost-saving synergies, targeting over $100 million per annum by optimising technical management costs and bunker spend.

Global Expansion: Navig8’s global footprint and fleet will significantly enhance ADNOC L&S’s international profile and expand its blue-chip customer base.

New Capabilities and Enhanced Services: The acquisition will broaden ADNOC L&S’s service offering to include pooling, commercial management, bunker trading, technical management, and ESG-focused digital solutions.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, stated: “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, 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.”

Nicolas Busch, CEO of Navig8, added: “Navig8 is excited by ADNOC L&S’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&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. We are very proud to support ADNOC L&S as they increase their global footprint.”

At the time of its public listing, ADNOC L&S committed to investing $4-5 billion over the medium term. Following a strong Q1 2024 financial performance and earnings outlook upgrade, the Company revised its growth guidance upwards, intending to invest over $5 billion in energy-related maritime logistics over the medium term to meet growing demand in the UAE and beyond.

The Company reported robust Q1 2024 financial results, with a 34 percent year-on-year increase in net profit and a 42 percent year-on-year increase in revenues. ADNOC L&S’s IPO in 2023 was 163 times oversubscribed, making it the most in-demand IPO worldwide at the time and the second largest IPO in the MENA region in 2023. Since listing, ADNOC L&S’s share price has appreciated by more than 100 percent. This acquisition is the latest in a series of successful M&A deals undertaken by the Company since its IPO.

Captain Al Masabi concluded: “At the time of our public listing one year ago, we made a commitment to our shareholders and the market to accelerate our strategic investments over the medium term. We are progressing towards achieving our strategic growth investment target with major expansions of our fleet and global footprint. The acquisition of Navig8, combined with our recent shipbuilding activities, demonstrates that ADNOC L&S is delivering on our strategy to maximise shareholder value.”

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6 June 2024