Member Article

James Fisher cheer profits with £33m acquisition

Cumbria-based marine business James Fisher and Sons has acquired Divex Limited for £20m, with the possibility of a further £13m if profit targets are met.

Divex is a global manufacturer of diving and marine equipment and is headquartered in Aberdeen, with bases in Dubai, Perth, Sydney and Cape Town, while James Fisher supplies equipment to the energy, defence, construction and marine sectors

James Fisher said the bought company will be run by the current managing directors Derek Clarke and Doug Godsman, while Doug Austin will remain as the managing director in Asia Pacific and the group’s business development manager.

Divex reported turnover of £34.2m in its latest final results with an EBITDA of £4.6m, while its net assets stood at £13.6m.

Nick Henry, chief executive of James Fisher, commented: “Divex is a market leader in diving equipment for the oil and gas, and defence sectors.

“It is also the global leader in the design of saturated diving systems, which is a growing market. We believe that it will fit well with our Group both in terms of its market, customers and geographical spread.”

The buyer also posted profit surges in its final results on Wednesday, with an 18% rise in group revenues and a 14% increase in underlying profit before tax from £36.1m in 2011 to £41.3m last year.

Mr Henry added: “James Fisher had an excellent year in 2012, demonstrating the continued success of our strategy to focus on niche marine services in high growth markets and trading to date has been in line with management expectations.

“This, combined with strong market conditions in Offshore Oil and Specialist Technical, as the offshore oil and gas markets continue to develop at a rapid pace, as well as increasing demand for a range of skills to be supplied as a multi-disciplinary contract offering, leave James Fisher well placed to provide further growth and value for our shareholders.”

The business proposed a total dividend of 17.7 pence for the year, up from 16.08 pence in 2011.

Ian Knott, an associate director in KPMG’s corporate finance team in Aberdeen, which advised Divex Ltd on the sale to James Fisher and Sons PLC, said: “Divex has been sold to a new owner that recognises and complements the company’s market leading position in diving equipment and saturation diving systems.

“This deal is a great example of how a successful transaction can be agreed without the need for an extensive auction process, bringing together two businesses that fit together from a market, customer and also a geographic perspective.

“The deal is also another example of the continuing strong appetite for M&A in the wider oilfield services sector, whether from private equity and large corporates as purchasers or shareholders looking to realise value.

“Given the high levels of investment in oil & gas in the North Sea and overseas, this buoyancy is expected to continue for the foreseeable future.”

This was posted in Bdaily's Members' News section by Miranda Dobson .