James Fisher and Sons has acquired a majority stake in a Brazilian inspection, repair and maintenance (IRM) services firm as the UK-based firm steps up its subsea ambitions.
The London-listed marine services group has paid £7.5m ($9.1m) for 60% of the share capital of Continental Participacao E Administracao, the holding company of Servicos Maritimos Continental.
Nick Henry, chief executive of James Fisher, said the acquisition would increase the group's presence in Brazil's "important and growing" market for subsea services.
"The combination of Continental's reputation for safety and reliable service delivery and James Fisher's more extensive IRM capabilities provides strong opportunities in one of the group's key geographic growth markets," said Henry.
Continental, which is based in Macae in Rio de Janeiro State, is an air diving service provider to the offshore oil sector in Brazil.
It provides IRM services to offshore oil terminals, primarily to FPSOs.
The consideration will be paid in two installments, of which £4.9m is payable on completion of the deal and £2.6m will be paid in January 2022.
The remaining 40% share capital in Continental is owned by Afonso Ritzmann, the firm's managing director.
Ritzmann has the option to sell more of his shareholding in the future through a put and call option, which can be exercised between 2022 and 2026.
Growth by acquisition
This year has seen James Fisher expand into the subsea services sector with the acquisition of two subsea support vessels earlier this year.
In April, it purchased the 4,400-dwt Altus Uber (built 2007) for $24m and in January it bought the 103-metre diving support vessel Toisa Paladin (built 2008) for $20.3m from Greece's bankrupt Toisa group.
AIS tracking shows both vessels appear to have been idle since at least the start of this year and are moored in Dubai and the Canary Islands respectively.
Continental is the third company in which James Fisher has acquired an interest since 2019 began.
January saw the firm buy 100% of Martek Holdings, a UK-based marine equipment manufacturer, and 60% of Saudi firm Murjan Al-Sharq for Marine Contracting (MSMC).
Nick Henry is set to step down as James Fisher's chief executive on 1 October and will be succeeded by Eoghan O'Lionaird, as TradeWinds reported in July.
