Braemar Enters Financial Advisory Market with NAVES Purchase

September 7, 2017

UK-based shipbroker Braemar Shipping Services has entered into the conditional acquisition of the entire issued share capital of German NAVES Corporate Finance GmbH (NAVES), a corporate finance advisory business focused on the maritime industry.

NAVES advises predominantly German clients on financing, restructuring, and sale and purchase transactions. Since the establishment of the business in 2009, the company advised on over USD 6.5 billion of capital and charter hire restructurings.

The acquisition’s value has been set to EUR 24 million (USD 28.7 million), which could rise up to EUR 35 million depending on target working capital.

Braemar said the transaction would enable the company to create a new division to be known as the Financial Division, which would be headed by Mark Kuchenbecker and Axel Siepmann.

In addition, the acquisition is said to be in line with Braemar’s strategy to improve market coverage and diversify business operations by venturing into the valuable maritime financial advisory market.

As explained, acquisition benefits include continued growth opportunities from the strong fundamental market drivers of the NAVES niche business, which include continuing high global levels of distressed maritime debt, particularly held by German banks.

“The board has been looking for high-quality acquisitions for some time as a key part of Braemar’s growth strategy. NAVES not only introduces a new service offering for Braemar, enhancing our ‘full service’ offer to our customers, but also widens our geographical footprint,” James Kidwell, Chief Executive Officer of Braemar said.

“We have plans to develop the NAVES business within the group considerably as this acquisition marks a very good entry level into this growing niche market. It also signifies Braemar’s return to growth and I have no doubt that this will create further value for shareholders.”

The acquisition requires the approval of shareholders, who are set to convene on September 26, 2017, at a general meeting.