The Adani Harbour Services (TAHSL), a subsidiary of Adani Ports and Special Economic Zone (APSEZ), has signed a definitive deal to acquire a 100 percent ownership in Ocean Sparkle (OSL), India’s top third-party marine services provider. Towage, pilotage, and dredging are some of the company’s main activities. OSL is a market leader, with a fleet of 94 owned vessels and 13 owned by other parties.
OSL is valued at an enterprise value of Rs 1,700 crore with Rs 300 crore of free cash in the company. OSL’s attractive capital structure, quality operations and sustainable cash flows are reflected in its attractive credit rating (AA- by ICRA). The Company is expected to have revenue of Rs ~600 crore, EBITDA of Rs ~310 crore and PAT of Rs ~135 crore in FY22. Around 92% of OSL’s total revenue was contributed by marine services (Towage & Pilotage), and the remaining 8% is from dredging and other offshore services combined. The net debt to EBITDA ratio is less than 1x. APSEZ’s acquisition of OSL concluded at an attractive EV/ FY23E EBITDA of 5.7x.
