DP World PLC has acquired Topaz Energy and Marine from Renaissance Services and Standard Chartered Private Equity/Affirma Capital for an enterprise value of $1bn.
Topaz Energy had a backlog of $1.6bn as of 31 March 2019, and DP World wrote in a statement announcing the acquisition that the deal would support its aim to increase its presence in the global logistics and marine services industry.
"In recent years, we have been investing selectively in the marine logistics sector in companies with high revenue visibility, consistent track record and strong customer relationships," said DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem. "This latest acquisition complements the operations of our P&O Maritime Services (POMS) business, which maintains over 300 vessels globally."
Topaz is a leading international critical logistics and solutions provider to the global energy industry. The company operates a modern, versatile fleet of 117 vessels, predominantly in the Caspian Sea, MENA, and West Africa regions. The group enjoys a particularly strong position in its core Caspian Sea market. The Caspian Sea is the largest inland body of water in the world, and one of the most strategic oil basins. Long-term contracts and high barriers to entry characterise the basin, which holds approximately 6 per cent of global oil reserves. Topaz also maintains long-standing relationships with many of the leading international and national oil companies, including BP, Chevron, Dragon Oil, Dubai Petroleum, ExxonMobil and Tengizchevroil."Much like DP World, Topaz has evolved its business, offering customers a range of logistics solutions and helping the company outperform the industry," bin Sulayem said. "We believe that this innovative approach, together with the increased scale, will allow the combined Topaz and P&O Maritime Services business to drive efficiencies and earnings growth. Furthermore, this new partnership opens the door for DP World to explore new business areas more extensively, for example, increasing transit volumes through Azerbaijan within the East-West trade corridor."