Abu Dhabi – Mubasher: ADNOC Logistics & Services (ADNOC L&S) penned a deal to acquire Navig8 TopCo Holdings Incorporation to boost its global expansion strategy, according to a press release.

ADNOC L&S will acquire an 80% stake in Navig8 for $1.04 billion (AED 3.80 billion) with economic ownership transfer effective from 1 January 2024.

Later in 2027, the ADX-listed group will own the remaining 20% shareholding for a deferred consideration of $335 million to $450 million (AED 1.20 billion to AED 1.70 billion).

The transaction is expected to boost earnings per share (EPS) by at least 20% for ADNOC L&S shareholders.

The UAE-based company will unlock significant value through cost saving synergies, with savings targets exceeding $100 million (AED3 67 million) annually.

Navig8 is an international shipping pool operator and commercial management company with an owned fleet of 32 modern tankers and a presence in 15 cities across five continents.

In 2023, it delivered more than $400 million (AED 1.50 billion) in earnings before interest, taxes, depreciation, and amortisation (EBITDA), equivalent to 44% of ADNOC L&S’ EBITDA in the same period.

Under the joint agreement, ADNOC L&S will provide its services, including pooling, commercial management, bunker trading, technical management, and ESG-focused digital solutions.

Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “The addition of Navig8’s presence in 15 international cities, fleet of tankers and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company.”

Nicolas Busch, CEO of Navig8, commented: “Navig8 is excited by ADNOC L&S’ investment into the company, which is a great credit to the hard work and dedication of the Navig8 global team over the last 17 years making this partnership possible.”

“The opportunity to work collaboratively with ADNOC L&S and the wider ADNOC Group brings together their extensive knowledge of energy markets with Navig8’s unique presence in the maritime sector,” Busch added.

He underlined: “This will allow us to enhance the service and value we deliver to both our customers and the Navig8 group. We are very proud to support ADNOC L&S as they increase their global footprint.”

In the first quarter (Q1) of 2024, the maritime logistics arm of ADNOC Group witnessed robust financial results, reporting an annual hike of 34% in net profit to $194 million (AED 712 million).