ISS joint venture establishes foothold in AfricaCompany News // July 16, 2010
Integrated Subsea Services (ISS) has established a new company, ISS Africa, through a joint venture with South African diving company Cape Diving.
In a multi-million deal, the Aberdeen-headquartered diving, ROV and survey support services business has acquired a share-holding in the Cape Town based firm.
ISS Africa will further exploit the growing West African market, where ISS has recently started to operate, and significantly expand the international reach of the company which spans Europe, the Caspian, South-East Asia and Australia.
ISS boasts a turnover in the region of £85 million, employs around 600 people worldwide and operates from bases in Aberdeen, Singapore, Baku and Perth, Australia.
Ian Herd, founder and managing director of ISS said: “Through this joint venture with Cape Diving, ISS will be able to fast-track its growth in South and West Africa. This deal effectively combines our considerable resources and expertise with the existing local knowledge and established infrastructure of Cape Diving to get us up and running quickly in West Africa.
“With significant deepwater projects taking off in West Africa, there is high demand for an independent provider of subsea services and we anticipate continued growth in this marketplace in the next five years.”
Established in 1962, Cape Diving is the oldest underwater services contractor in South Africa with 100 staff. Remotely operated vehicle (ROV) intervention services were introduced in 2003 and the company currently operates four vehicles including eyeball ROV's, electric inspection class vehicles and a 100 hp drill-support package.
Commenting on the deal, Alan Thomas, managing director of Cape Diving, said: “We welcome this joint venture with ISS which will enable our management and staff to benefit from their experience and global reach. This is an exciting time for subsea contractors in West Africa. Through the greatly enhanced capability and experience our combined resources will bring to our client base, we are now better positioned to compete in this growing market and secure major new contracts.”
The deal underlines the steady international growth at ISS in the last 18 months, during which time it has established a base in Singapore and acquired the ROV business and assets of Submec in Australia.