7th Aug 2019 10:02
(Alliance News) - Marine engineering services firm James Fisher & Sons PLC said Wednesday it has acquired a 60% stake of Brazilian air diving service Continental Participacao E Administracao Ltda for GBP7.5 million in cash.
Of the total consideration, GBP4.9 million will be payable on completion and GBP2.6 million in January 2022.
Continental is based in Rio de Janeiro State in Brazil. It provides inspection, repair and maintenance services to offshore oil terminals, primarily of floating production, storage and offloading vessels.
Between 2016 and 2018, the average annual earnings before interest, tax, depreciation and amortisation of Continental were GBP3.1 million.
Continental Managing Director Afonso Ritzmann will stay on and retains a 40% interest in Continental. This is subject to a put and call option which can be exercised between 2022 and 2026. The option prices are based on a multiple of average earnings at the time and are capped.
"The acquisition of Continental in Brazil increases our presence in this important and growing market for subsea services. The combination of Continental's reputation for safety and reliable service delivery and James Fisher's more extensive IRM capabilities provides strong opportunities in one of the group's key geographic growth markets. We look forward to working with Afonso and his team in driving this forward," said James Fisher Chief Executive Nick Henry.
Shares in James Fisher were trading 0.6% higher at 1,976.00 pence each on Wednesday in London.
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