Dubai's DP World has expanded its shipping portfolio with a $1.079bn takeover of Middle East offshore support vessel operator Topaz Energy & Marine.
It has bought the company from Oman's Renaissance Services and Standard Chartered Private Equity/Affirma Capital.
Topaz has a "modern and versatile" fleet of 117 vessels, predominantly in the Caspian Sea, Middle East and North Africa, and West Africa regions, DP said on Monday.
Topaz said it was "very pleased" with the deal, which would combine two strong companies with an extensive market profile.
"The combination brings greater financial strength, allowing increased investment both in the fleet and in technology and innovation, to the benefit of current and future stakeholders," it added.
Topaz chief executive Rene Kofod-Olsen said: "This is an excellent deal for our employees and customers. Being part of a world leading group such as DP World, ensures that we will continue to be an employer of choice for talented individuals and will bring greater strength and benefits to our customers."
DP said on Sunday that it was in talks to buy its Dubai compatriot following reports a $1.3bn deal was nearing completion.
Topaz has consistently been linked with a $1.5bn initial public offering in recent years.
In September, it was reported that the company could be listed in London this year, with Goldman Sachs and Morgan Stanley linked to the deal as advisors.
Renaissance pulled a planned London IPO in 2011 over valuation concerns and growing regional unrest. The implied valuation was between $1.5bn and $1.9bn.
Topaz avoided restructuring
Renaissance bought Topaz through a share swap in 2005.
The OSV company is one of a handful that has not restructured financially during the offshore slump.
The fleet includes anchor-handlers, heavy deck-cargo units, multipurpose support vessels, platform supply vessels and emergency response ships.
In the last year, terminal giant DP has acquired Unifeeders and P&O Ferries.
Topaz is in a particularly strong position in the Caspian, with contracts with BP, Chevron, Dragon Oil, Dubai Petroleum, ExxonMobil, Saudi Aramco and Tengizchevroil.
DP said the company has outperformed the market with strategic deals, having a backlog of $1.6bn at 31 March.
"For DP World, the transaction supports our objective of increasing the company’s presence in the global logistics and marine services industry," it said.
Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, added: “We are pleased to announce the acquisition of Topaz, further strengthening DP World’s position as a world-leading operator in maritime logistics services.
Selective investments
"In recent years, we have been investing selectively in the marine logistics sector in companies with high revenue visibility, consistent track record and strong customer relationships, and this acquisition complements the operations of our P&O Maritime Services, which maintains over 300 vessels globally."
He said: "Much like DP World, Topaz has evolved its business, offering customers a range of logistics solutions and helping the company outperform the industry. We believe that this innovative approach, together with the increased scale, will allow the combined Topaz and P&O Maritime Services business to drive efficiencies and earnings growth, and we look forward to welcoming the Topaz team into the DP World family."
DP said the deal opens the door for it to participate more extensively in new business areas, including increasing transit volumes through Azerbaijan under the East-West trade corridor.
"This transaction is in line with our strategy to grow our presence in marine logistics and become a solutions provider to end customers,” the CEO added.
