Photo: David Wells, CEO AqualisBraemar

AqualisBraemar to buy LOC in support of energy transition efforts

AqualisBraemar has entered into an agreement to acquire a 100 per cent of the shares in LOC Group, creating an even more complete service provider to the upstream oil and gas industry.

AqualisBraemar is an Oslo-listed group that offers consultancy services to the offshore energy industries, including renewables and oil and gas, plus shipping and insurance industries.

David Wells, CEO of AqualisBraemar, said: “Our strategy is clear; we want to leverage on our position within oil and gas markets to support the global energy transition. LOC Group, with its strong and highly complementary footprint within the same industries, is a perfect fit for this strategy”.

Founded in 1979, LOC Group is an international marine and engineering consulting firm that operates under four brand names: LOC, Innosea, Longitude, and JLA (John LeBourhis).

It operates in the oil and gas industry, providing loss prevention and loss management services as well as marine and engineering consultancy services.

Longitude provides independent engineering and design consulting to the oil and gas sector, while JLA delivers rig-related approval services around the globe.

Dr R. V. Ahilan, CEO of LOC Group, said: “The consulting space within offshore energy – including oil and gas and renewables – is ripe for consolidation. Our customers’ needs are rapidly evolving, with many branching out into new energy sources, and we believe our joint increased scale and wider global footprint will help us cater for those requirements”.

Following the completion of the acquisition, the combined group will be a global independent offshore energy and marine consultancy firm with a total of 880 employees in 85 offices in 39 countries all over the world.

“Our complementary geographical footprint reiterates how this acquisition will allow us to provide clients in the oil and gas industry with even better local expertise and swifter response times regardless of where in the world they are”, adds David Wells.

The two companies have highly complementary market positions in the oil and gas sector. AqualisBraemar’s position is within the rig moving marine warranty services and LOC Group’s is within project marine warranty services in the oil and gas sector.

“We are combining two well-run businesses to create an even more complete service provider. You would have to look very, very hard to find a better strategic fit than AqualisBraemar and LOC Group. This is a key reason for why key managers have decided to continue with the combined group”, said David Wells.

Energy transition focus

AqualisBraemar said on Monday that LOC Group CEO, Dr R. V. Ahilan, will continue in the joint company in a newly created role as chief energy transition officer, supporting the group’s ambition of 50 per cent of revenues coming from renewables and other sustainability and CO2-reducing activities by 2025.

He will also join the combined group’s executive management team.

“Our objective is that 50 per cent of our revenues should come from the renewables sector and other sustainability and CO2-reducing activities in 2025.

“However, reducing the carbon intensity of the offshore oil and gas and shipping industries are also key to achieving the energy transition the world so desperately needs. We will continue to support all these industries to help make this energy transition happen”, adds Dr Ahilan.

Over $20m price tag

AqualisBraemar has entered into an agreement to acquire 100 per cent of the shares in Neptune Midco 1 Limited from the ultimate parent company of the LOC Group, LOC Group Holdings Limited, the shareholders of which include pan-European investment group Bridgepoint and key employees of LOC.

The purchase price consideration consists of a combination of $20.2 million net cash consideration, subject to customary adjustments prior to closing, plus conditional warrants in AqualisBraemar.

Closing of the acquisition is expected on or around 21 December 2020.

The transaction is subject to the approval of an equity issue by an extraordinary general meeting in AqualisBraemar. The EGM will be held on or about 14 December 2020.

AqualisBraemar and LOC Group will be trading separately for up to six months following the completion of the transaction.