Energy consultancy Aqualis and services company Braemar Technical Services are to join forces to create a new company that will focus on offshore wind and other marine industries.
AqualisBraemar, formed through the latter’s acquisition of the former’s marine, adjusting and offshore business units, will have a dedicated renewables unit as well as three other divisions.
Braemar is to take a 26% equity stake in the enlarged consultancy, which will employ more than 430 full-time staff globally, as part of the transaction. This could rise to 33% depending on business performance.
The new company will have a broader service offering and increased scale, while minimal overlap in renewables will lead to “immediate opportunities for enhanced growth”.
Aqualis chief executive David Wells, who will also head up the new outfit, said: “By joining forces, we create a more sustainable business with strong platform for international growth.”
He added: “We will be better able to support our clients’ growth by offering our joint and enhanced leading expertise. With our larger scale, more resources and our engaged and talented people, we will improve our ability to meet our clients’ needs globally.”
The merger is expected to create “significant” shareholder value through estimated run rate EBITDA synergies of approximately US$2m to be implemented in full by year-end 2021.
The combined company’s executive management will consist of Wells, CFO Kim Boman (Aqualis), group and offshore COO Reuben Segal (Aqualis) and COO insurance services Grant Smith (Braemar), with other senior divisional management selected from top talent within both companies. The head office will be located in London.
Braemar chief executive James Kidwell said: “Our respective businesses fit well together and the combination will create a market leading position in Offshore, Marine, Adjusting and Renewables services with global coverage which will enable the stronger combined business to unlock significant revenue and cost synergies.
“We strongly believe that the enlarged Aqualis group, which will retain the Braemar name and trade as AqualisBraemar, will bring numerous benefits and opportunities to both clients and employees going forward.”
Completion of the transaction is subject to the approval by Aqualis shareholders at an AGM, which is expected on 11 June.
The deal is not subject to any regulatory approvals and could close by the end of June.
Wells added in the company’s results for the first quarter of 2019 that activity in offshore wind remains high.
“We are very excited about the future of the offshore wind business particularly in emerging markets where we have identified several growth opportunities,” he said.