Abu Dhabi-based Adnoc Logistics & Services is making a big expansion move in the offshore oil services sector by acquiring compatriot offshore player ZMI Holdings, which trades in the market as Zakher Marine International.
The deal will add another 60 offshore support vessels and jack-up construction lift boats to the Adnoc L&S offshore portfolio, which currently comprises around 20 OSVs.
The acquisition, which is subject to regulatory approvals, is expected to close in the fourth quarter of this year.
The acquisition, described as a “strategic combination”, will see ZMI continue operating as a standalone entity with current chief executive Ali Hassan El Ali and finance director Ahmed Omar continuing in their current roles.
El Ali joined ZMI as business development Director in 2014 and was promoted to managing director in 2017. The company credits him for leading it through a critical phase of accelerated growth to become a major player in the sector.
Omar, who was described as “instrumental” in conducting the Adnoc L&S transaction, is also said to have been crucial to the successful re-organisation and re-financing of ZMI, which allowed the company to deliver on its growth plans.
The deal with Adnoc L&S “creates a unique platform” for ZMI to accelerate its growth and expand its business footprint in the Middle East and globally, allowing it to capture new revenue opportunities and drive market consolidation, ZMI said in a media statement.
“Following the acquisition by Adnoc L&S, we are primed to drive and convert on our strategic priorities. We will leverage Adnoc’s extensive global operations to move ahead with our market consolidation and fleet expansion plans, alongside pursuing value-added opportunities in the energy transition space and establishing relationships with operators in new markets,” Ahmed El Ali said.
Hassan Abdelkader El Ali, ZMI’s founder, chairman and board member, said the transaction with its long-standing business partner supports the company’s growth ambitions “as we work with oil & gas clients as well as accelerating our business supporting the transition to net zero”.
“Expanding our services will allow us to more effectively address our customers’ needs and challenges. We have plans in place to further diversify our portfolio of assets and clients, expanding in China and utilising Adnoc’s breadth and depth to rapidly scale-up in areas of high demand,” he added.
Middle East offshore major
ZMI, which was established in Abu Dhabi in 1984, brings to the deal 24 jack-up construction liftboats, together with 38 OSVs. Its fleet is described as one of the youngest, most fit-for-purpose in the industry. The company said it is on track to deliver a record Ebitda run rate of over $300m in 2022.
ZMI has a broad and diversified customer base across the UAE, Saudi Arabia and Qatar, with long-term relationships with national and international oil companies. As part of its geographic diversification goals, and as an entry point into the renewables sector, it recently entered the offshore wind farm market in China.
Goldman Sachs International acted as ZMI’s financial advisor and White & Case as legal counsel for the deal. Moelis & Company acted as financial advisor to ADNOC L&S.
