It was announced that MMA Offshore Limited has entered into an agreement to acquire Subcon International Pty Ltd through the acquisition of 100% of Subcon International Pty Ltd.
The acquisition supports MMA’s growth objectives and is expected to generate a number of key strategic benefits:
• Enhanced capability to service our existing markets of oil and gas and offshore wind through the combination of MMA and Subcon’s service offering;
• Access to new markets with significant potential for growth through a range of innovative solutions including oil and gas decommissioning through Subcon’s rigs to reef offering, attenuating reef systems to combat coastal erosion, scour protection technology and recreational reef developments;
• Significant growth potential under MMA ownership with increased access to capital and complementary skills and assets to accelerate growth;
• Market consolidation through the combination of MMA’s existing subsea stabilisation business with Subcon;
• Enhancement of MMA’s sustainability strategy bringing a range of adjacent environmental marine services such as engineered reefs, wind farm ecology and coastal erosion solutions within MMA’s capability;
• Enhanced engineering capability with a committed and highly capable in-house team to be retained with the business;
• Cost synergies estimated at $0.5m per annum annualised;
• Cultural and values alignment with a strong focus on safety, quality, sustainability and innovation;
• Profitable, low capital intensive business which will be immediately EPS accretive.
MMA’s Managing Director, Mr. David Ross, said:
“The acquisition of Subcon is an exciting development for MMA and is strongly aligned with our strategy to extend and diversify our service offering in a sustainable manner.
The acquisition enhances our service offering to our existing oil & gas and offshore wind markets by combining our capability, whilst Subcon also bring a number of new solutions to expand our reach into coastal erosion management and the tourism sectors.
I am confident that the Subcon business can thrive under MMA’s ownership and look forward to jointly developing and growing the business with the Subcon team.”
Integration of the business will commence immediately upon completion with the Subcon business to become part of MMA’s Subsea Services division.
The current Subcon team will continue with the business including Subcon’s founder, Matthew Allen and Chief Executive Officer, Cameron Stirling who will both be instrumental in continuing to lead and grow the business under MMA’s ownership.