Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, has announced its acquisition of an 80% stake in Astro Offshore Group (“Astro”), a global Offshore Support Vessel (OSV) operator, in an all-cash deal valued at USD 185 million. The transaction implies an enterprise value (EV) of USD 235 million, with an EV/FY25E EBITDA multiple of 4.4x. This strategic acquisition aligns with APSEZ’s ambitious roadmap to become one of the world’s largest marine operators and is expected to be value accretive from the first year.
Founded in 2009, Astro Offshore operates a diverse and modern fleet of 26 OSVs, including Anchor Handling Tugs (AHTs), flat top barges, Multipurpose Support Vessels (MPSVs), and workboats. Astro provides a wide range of vessel management and complementary services across key markets in the Middle East, India, Far East Asia, and Africa. For the financial year ending April 30, 2024, Astro posted revenue of USD 95 million and EBITDA of USD 41 million, remaining net cash positive as of the same date.
Astro boasts a prestigious lineup of Tier-1 customers, including industry giants such as NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem. The company has established itself as a significant player in the offshore construction, fabrication, and transportation markets, supporting the construction and maintenance of offshore platforms, oil & gas fields, and subsea facilities. Astro’s strong pre-qualification with major global EPC contractors has enabled it to secure contracts with leading companies in the oil & gas industry, ensuring high fleet utilisation and capitalising on rising charter rates due to limited global OSV supply.
“This acquisition is a significant step in APSEZ’s journey towards becoming one of the world’s leading marine operators,” said Mr. Ashwani Gupta, Whole-time Director & CEO of APSEZ. “Astro will add 26 OSVs to our current fleet of 142 tugs and dredgers, expanding our total fleet count to 168. This transaction will not only enhance our global marine portfolio but also give us access to Astro’s impressive roster of Tier-1 customers, further consolidating our presence across the Arabian Gulf, the Indian subcontinent, and Far East Asia. We look forward to working closely with Astro’s leadership team to scale up the existing platform.”
Astro’s acquisition by APSEZ marks a critical inflection point for the company, which has developed a robust trajectory over the past 15 years through strategic investments in its fleet and solid relationships with its customers. “Partnering with APSEZ represents a transformative opportunity for Astro,” said Mr. Mark Humphreys, Managing Director of Astro Offshore. “Together, we can accelerate growth, diversify our fleet mix, expand our geographical footprint, and offer more end-to-end solutions to our clients.”
The existing promoters of Astro will retain a 20% stake in the company. The transaction, which does not require regulatory approvals, is expected to close within a month, subject to the fulfilment of operational conditions precedent. The acquisition underscores APSEZ’s commitment to expanding its global reach and enhancing its service offerings, positioning itself as a formidable player in the international marine logistics sector.
