James Fisher acquires SubtechCompany News // March 4, 2015
A leading South African marine services contractor has been acquired by James Fisher and Sons PLC of Barrow-in-Furness in the UK, in a deal advised by international M&A consultancy BCMS.
Durban-based Subtech Group is the leading salvage and underwater construction expert along the sub-Saharan coast, and was purchased by UK marine engineering group James Fisher & Sons PLC. The vendors were advised by BCMS’ Africa deal team.
Subtech Group employs more than 200 divers, sub-sea engineers, and support staff from offices stretching from Namibia to Mozambique, working for clients including Shell, Alcatel-Lucent, Ericsson and Transnet.
The initial consideration is £3.4 million in cash, plus a potential further consideration of £9.9m if Subtech achieves profit targets in 2015 and 2017. An additional £4.7 million will also be paid if profits rise above target levels between 2015 and 2017.
Subtech CEO Greg Raaff said: “Subtech is very excited and proud to be part of the Fisher Group. With our close synergies to many of Fisher’s current services and group companies, as well as our geographic footprint, we look forward to enhancing our current market offering and to being an ideal shop front for Fisher’s services into southern Africa.”
Nick Henry, chief executive officer of James Fisher, in a statement said: “The acquisition of Subtech broadens our presence in the growing markets around Africa. Subtech's marine and subsea services are very complementary to our own. We are looking forward to working together with the Subtech team.”