Jame Fisher Acquisition of Subtech Group Holdings (PTY) Ltd

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Jame Fisher Acquisition of Subtech Group Holdings (PTY) Ltd

The initial consideration is ZAR61.0m (£3.4m) in cash plus potential future consideration up to a maximum of ZAR175.0m (£9.9m). This would be based on the Company achieving prot targets in 2015 and 2017. There is an additional prot share above target levels up to a maximum of ZAR85.0m (£4.7m) between 2015-2017.

Subtech is a South African based marine and sub-sea service provider with activities in Mozambique, Namibia, Angola and Tanzania. The Company has a strong reputation for reliable and timely completion of marine construction projects, submarine pipeline installation and maintenance, specialised marine engineering projects, diving, and salvage. They are also well positioned to take advantage of any future expansion of oil and gas activities in East and West Africa.

EBITDA (earnings before interest, taxation, depreciation and amortisation) were £0.7m in the year ended 31st December 2013 with a similar performance in 2014, subject to audit. Net assets being assumed in the transaction are £2.9m and gross assets £5.7m. Greg Raaff, Chief Executive Ofcer of Subtech and his senior management team will all continue with the Company.

Nick Henry, Chief Executive Ofcer of James Fisher, 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.”

Greg Raaff said “Subtech is very excited and proud to be part of the James 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 the Group’s services into Southern Africa.”

E C Hambro Rabben and Partners has acted as corporate adviser to James Fisher and Sons plc.