Neptune to fork out $2.13m for Allied Diving

NEPTUNE Marine Services has revealed the “first step” in its plans for future growth. The underwater welding specialist says it plans to spend $A2.13 million acquiring Perth-based offshore oil and gas diving contracting company, Allied Diving Services.
Neptune to fork out $2.13m for Allied Diving Neptune to fork out $2.13m for Allied Diving Neptune to fork out $2.13m for Allied Diving Neptune to fork out $2.13m for Allied Diving Neptune to fork out $2.13m for Allied Diving

Neptune told the ASX yesterday that the merger would add about $3 million in revenue to its earnings each year.

“We announced last month that acquisitions will form part of Neptune’s future growth and this is our first step in enabling that strategy,” Neptune managing director Christian Lange said.

“We fully expect the combination of Allied and Neptune to accelerate our strategy to capture specific opportunities in the oil and gas, merchant marine and marine infrastructure sectors.

“Furthermore, Allied’s skills in the areas of inspection, repair and maintenance, particularly in the oil and gas sector, will help Neptune rapidly develop an end-to-end business model that offers customers an integrated suite of sub-sea services.”

Lange added that the merged entity would strengthen relationships with Allied’s customer base and provide an additional channel to market Neptune’s other services, such as its dry welding technology NEPSYS.

Subject to due diligence, the acquisition will be made via an upfront combination of cash and the issue of Neptune shares to Allied’s directors, escrowed for 24 months.

In addition, Allied’s two principals, Peter Sare and Colin Murphy, will stay with the business and continue to drive its growth, according to Neptune.

Neptune quoted Murphy as saying that as a result of the merger, Allied could take advantage of more significant opportunities in the oil and gas, defence and marine services market.

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