ADNOC Logistics and Services (ADNOC L&S) has announced an agreement to acquire Navig8 TopCo Holdings Inc., an international shipping pool operator and commercial management company. Under the terms of the agreement, ADNOC L&S will acquire 80% of Navig8 for $1.04 billion (Dh3.8 billion), with economic ownership transferring effective from January 1, 2024. The remaining 20% ownership will be acquired in 2027 for a deferred consideration of $335 million to $450 million (Dh1.2 billion to Dh1.7 billion).
According to a stock market filing, the first full year of investment is projected to boost earnings per share by at least 20% for ADNOC L&S shareholders. Navig8 reported over $400 million (Dh1.5 billion) EBITDA in 2023, equivalent to 44% of ADNOC L&S’ EBITDA in the same period.
“ADNOC L&S will unlock significant value through cost-saving synergies, with savings targets of over $100 million (Dh367 million) per annum already identified through optimising technical management costs and bunker spend,” the statement read.
This acquisition will enhance ADNOC L&S’ service offerings, including pooling, commercial management, bunker trading, technical management, and ESG-focused digital solutions.
“This value-accretive acquisition marks another major milestone as we deliver on our transformational growth strategy,” stated Captain Abdulkareem Al Masabi, CEO of ADNOC L&S. “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.”
Following the acquisition, the current Navig8 management team will continue to operate the business under the existing Navig8 brand to ensure continued strength in business performance while leveraging the complementary benefits of its partnership with ADNOC L&S.
“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,” noted Nicolas Busch, CEO of Navig8. “This will allow us to enhance the service and value we deliver to both our customers and the Navig8 group.”
