APSEZ acquires 80% stake in global OSV operator Astro Offshore for $ 185 m

Gautam Shantilal Adani 

Adani Ports and Special Economic Zone Ltd. (APSEZ), India’s largest ports and logistics company, has entered into a definitive agreement to acquire an 80% stake in Astro, in an all-cash deal for $ 185 million, implying an EV of $ 235 million and EV/FY25E EBITDA at 4.4x. The transaction is expected to be value accretive from the first year itself.

Incorporated in 2009, Astro is a leading global OSV operator in the Middle East, India, Far East Asia, and Africa. Astro owns a fleet of 26 OSVs comprising Anchor Handling Tugs (AHTs), flat top barges, Multipurpose Support Vessels (MPSVs), and workboats and provides vessel management and complementary services. During the year ending 30 April 2024, Astro posted $ 95 million revenue and $ 41 million EBITDA. As of 30 April 2024, Astro was net cash positive.

Astro has an impressive roster of Tier-1 customers including NMDC, McDermott, COOEC, Larsen & Toubro, and Saipem. Astro is a key player in the offshore construction and fabrication and offshore transportation markets. Astro’s pre-qualified status with major global EPC contractors and ability to deliver a variety of ocean-going vessels have enabled it to build a roster of Tier-1 customers in the oil and gas industry. 

Astro’s deep experience in supporting the construction and maintenance of offshore platforms, oil and gas fields, and subsea facilities allows it to deliver cutting-edge services to clients in the offshore exploration and drilling markets. Astro’s vessels also support multiple operations for leading international dredging companies, including large offshore construction and land reclamation projects. 

Astro leverages an efficient mix of medium to long-term contracts with customers, which allows it to maintain high fleet utilisation and benefit from increasing charter rates, driven by a limited supply of OSV fleets globally.

“Astro’s acquisition is part of our roadmap to becoming one of the world’s largest marine operators. Astro will add 26 OSVs to our current fleet of 142 tugs and dredgers, taking the total count to 168. The acquisition will also give us access to an impressive roster of Tier-1 customers while further consolidating our footprint across the Arabian Gulf, the Indian subcontinent, and Far East Asia. We look forward to working closely with Astro’s leadership team and scaling up the current platform,” said APSEZ Whole-Time Director and CEO Ashwani Gupta. 

“Over the past 15 years, we have created an impressive company trajectory, driven by strategic investments in our OSV fleet and deep relationships with our customers. This partnership with APSEZ represents a critical inflection point for us. Together, we can accelerate growth to add further scale and diversity to our fleet mix, expand our geographical footprint, and deliver more end-to-end solutions to our customers,” said Astro Offshore Managing Director Mark Humphreys.

Adani Ports operates 15 ports and terminals in India, representing 27% of port volumes and developing terminals in Sri Lanka, Israel, and Tanzania.