DOF Group to acquire Maersk Supply Service for $1.1bn

Norway-based offshore services provider DOF Group has entered into an agreement to acquire Danish Maersk Supply Service for $1.1bn, the companies said in a joint statement on July 2.

The acquisition will be paid partly in cash and partly in new shares to be issued by DOF. After the issuance of the shares, Maersk will hold 25% of the share capital in DOF. The combined company will be one of the largest oil services companies listed on the Oslo Stock Exchange.

DOF said that the acquisition will further strengthen its integrated service offering and position, leading to immediate fleet expansion without the need for substantial newbuild lead time. DOF will gain 22 vessels as part of the deal, comprising eight CSVs, 13 AHTS vessels, and one cable layer.

Following the acquisition, the DOF Group will comprise a workforce of more than 5,400 employees with 78 offshore/subsea vessels, 65 of which are owned, and the engineering capacity to service both the offshore and subsea markets.

DOF intends to finance the cash portion of the purchase price through a combination of a new debt facility of $500mn and an equity raise of new shares in DOF for up to $125mn.

The deal is expected to close in the fourth quarter.