HM MOS, Seafox merger creates largest offshore jack-up ASV firm
HM MOS International Limited, parent company of Millennium Offshore Services Superholdings LLC, and Seafox Group, parent company of Seafox Contractors and Workfox, will combine to form what they claim is the world’s largest offshore jack-up accommodation service vessels (ASV) and support company.
The merged group will have a global reach spanning Europe, the Middle East & North Africa (MENA), and Asia Pacific Regions. The newly formed company will operate under the brand name Seafox.
According to a joint statement by the companies, by joining forces, the Group is uniquely positioned for further growth, combining Millennium Offshore Services’ and Seafox Group´s complimentary regional and fleet operations.
The Company offers the largest offshore support jack-up fleet in the world, the statement further reads, operating 12 jack-up ASV and offshore support units.
The Group promises end users will benefit from its geographical spread and in-depth knowledge of the regional markets as they will be serviced by highly experienced local offshore and onshore staff totalling approximately 700 employees.
The combined fleet meets all client and statutory regulatory requirements, enabling customers to operate under all conditions whilst remaining cost effective. Seafox will be in an excellent position to meet customers’ current and future needs by having an expanded fleet and services portfolio.
The newly formed company has combined EBITDA of approximately USD 200 million with 45% of revenues generated from the European operation, 35% from MENA and 20% from Asia Pacific. The combined backlog of the group as of September 30th , 2014 is USD 777 million, which, the announcement reads, provides excellent visibility for future revenue, and puts Seafox in a prime position to consolidate its position in the market and provides a robust platform for potential future growth.
As part of the transaction, a consortium of investors, consisting primarily of leading investors from the Middle East who are current shareholders in HM MOS International Limited will acquire the majority of shares in Seafox from its current owners, the Cordia and Van der Lely families and NPM Capital.
The current shareholders of Seafox Group remain committed through a minority share in the new combination.
A new Senior Executive Committee, comprising key members of the existing Millennium Offshore Services and Seafox Group management teams, will be formed, with Robert Duncan becoming Group Chief Executive Officer.
Keesjan Cordia, the current CEO of Seafox will retain his executive role in Seafox group during a transitional period, after which he will join the Advisory Board of Seafox.
Keesjan Cordia stated: “This combination is a unique growth opportunity for Seafox Group. Over the past few years our organisation has more than tripled in size and established a solid reputation. This transaction is a milestone for Seafox Group and its employees and a testimony to the organisations competence, both on and offshore. I want to thank the entire team including the stakeholders for their commitment and contributions to the success of the company. I am confident that the new consortium of reputable investors together with current Seafox shareholders provides the group with a strong fundament to realize the next phase of growth. Together, we are solidly positioned to support our clients in both the oil & gas and renewable energy industries and to be able to act upon current and future market developments.”
Robert Duncan, comments: “We are excited about the opportunities this merger brings for the combined companies and our existing and potential customers. Our jack-up ASV and service operations are greatly complimentary and will instantly increase availability, fleet diversity and flexibility for existing and future customers. This particular market is ready for consolidation and we are delighted to be at the forefront of it. Our balance sheet and investor base provide us with an opportunity to fund further expansion on an opportunistic basis.”
For this transaction Seafox Group was advised by KPMG and Loyens & Loeff. HM MOS International was advised by ABN Amro, EFG-Hermes, Goldman Sachs and Freshfields.