James Fisher has acquired the entire share capital of Subtech.
The initial consideration is ZAR61.0m (£3.4m) in cash plus potential future consideration up to a maximum of ZAR175.0m (£9.9m) based on the Company achieving profit targets in 2015 and 2017. There is an additional profit share above target levels up to a maximum of ZAR85.0m (£4.7m) between 2015-2017.
Subtech is a South African based marine and sub-sea service provider with activities also in Mozambique, Namibia, Angola and Tanzania.
EBITDA (earnings before interest, taxation, depreciation and amortisation) were £0.7m in the year ended 31st December 2013 with a similar performance in 2014, subject to audit. Net assets being assumed in the transaction are £2.9m and gross assets £5.7m.
Greg Raaff, Chief Executive Officer of Subtech and his senior management team will all continue with the Company.
Nick Henry, Chief Executive Officer of James Fisher, said: “The acquisition of Subtech broadens our presence in the growing markets around Africa. Subtech’s marine and subsea services are very complementary to our own. We are looking forward to working together with the Subtech team.”
Greg Raaff said: “Subtech is very excited and proud to be part of the James Fisher Group. With our close synergies to many of Fisher’s current services and group companies, as well as our geographic footprint, we look forward to enhancing our current market offering and to being an ideal shop front for the Group’s services into Southern Africa.”