DOF Group in $1.1 billion agreement to acquire (most of) Maersk Supply

Image: DOF

Goodbye Maersk Supply, hello Maersk Offshore Wind … and a bigger DOF Group fleet. Maersk Supply Service, which is a subsidiary of A.P. Moller Holding, announced on Tuesday that it is forming a new company called Maersk Offshore Wind to provide installation services to the offshore wind market based on its new and state-of-the-art offshore wind installation vessel (Maersk WIV) concept.

The other shoe dropped when A.P. Moller Holding then announced that has entered into an agreement to combine Maersk Supply Service A/S with Norway’s DOF Group ASA (DOF Group) “to create a leader supporting the offshore oil and gas industry.“ Maersk Supply Service’s offshore wind installation concept will remain owned by A.P. Moller Holding as the newly formed Maersk Offshore Wind, focusing on the growing global offshore wind installation market and with Michael Reimer Mortensen as its CEO.

As we’ve reported earlier, the company has already booked contracts to employ the Maersk WIV on several U.S. offshore wind projects. The first Maersk WIV is currently under construction and is expected to be delivered in 2025 for the installation of Empire Offshore Wind.

Under the agreement with A.P. Moller Holding , DOF Group will acquire all shares in Maersk Supply Service A/S partly with payment in cash and partly by issuing new DOF shares. After closing of the transaction, A.P. Moller Holding will indirectly hold 25% of the share capital in the combined company, which will operate under the DOF Group name and brand and be headquartered in Norway. The transaction is expected to be completed by end 2024.

“Together with DOF Group, we will create a leading offshore service provider for the oil and gas industry, offering unique scale and a wide range of services across key markets. The combined company is committed to keep a solid footprint in Denmark. As the largest shareholder in the combined company, A.P. Moller Holding will remain an engaged owner, ensuring the combined company’s continued development,” said Martin Larsen, CFO, A.P. Moller Holding and chair of Maersk Supply Service snd Maersk Offshore Wind.“Drawing on our long-standing position in the offshore industry, combined with our ambition to contribute to the shift to green energy, we have separated Maersk Supply Services’ offshore wind installation business into an independent unit. By doing so, we aim to accelerate the implementation of its innovative installation concept that meets the industry’s need for faster installation process.”

STRATEGIC MILESTONE FOR DOF

DOF Group ASA says that the acquisition will be paid partly in cash and partly in new shares to be issued by DOF, and represents a consideration of approximately $1.112 billion (as of close on 28.06.2024).

The deal will see the DOF-controlled fleet get an additional 22 vessels, consisting of eight high-specification CSV vessels, 13 high-specification AHTS vessels and one cable layer vessel. That will bring its total fleet to 78 modern offshore/subsea vessels, 65 of which are owned,

“The announced transaction today marks a strategic milestone for the DOF Group, driven by a strong industry rationale and a shared vision with A.P. Moller Holding, who will indirectly become a major shareholder,” said Mons Aase, CEO of DOF. “Under the DOF name and brand, we will create a leading offshore services provider and strengthen the global position of the combined company. With the world’s largest fleet of CSVs and high-end AHTS vessels, we will enhance the customer experience through increased scale, global reach, and industry-leading services, combining the strong capabilities and decades of experience of DOF and Maersk Supply Service. I look forward to further developing the DOF Group together with my new and existing colleagues, ensuring the continued delivery of world-class services to our customers.”

Prior to closing of the transaction, certain entities, vessels, assets and liabilities will be transferred out of the MSS structure and not be acquired by DOF. The offshore wind installation business has already been carved out of Maersk Supply Service. Further, the transaction does not include MSS’ operations in Brazil.

• More details on the deal HERE