SYDNEY, AUSTRALIA: MMA Offshore Limited has entered into an agreement to acquire Subcon through the acquisition of 100% of Subcon International Pty Ltd which in turn owns all of the subsidiaries within the Subcon group.
The purchase consideration, totalling A$8.4 million, will comprise $4.2 million in cash, to be paid from existing cash reserves, with the balance of the consideration to be issued in MMA ordinary shares at the 60-day volume weighted average share price on completion.
Established in 2011 and headquartered in Perth, Subcon provides innovative stabilisation, coastal erosion and engineered reef solutions to the oil and gas, offshore wind, coastal infrastructure and tourism sectors both in Australia and internationally.
Subcon has averaged revenue of approximately $12 million over the past four years at an average EBITDA margin of 14%. Subcon delivered its highest ever EBITDA of approximately $4 million in FY2020, prior to the impacts of COVID-19.
The acquisition supports MMA’s growth objectives and is expected to generate a number of key strategic benefits.
MMA’s Managing Director, Mr. David Ross, said: “The acquisition of Subcon is an exciting development for MMA and is strongly aligned with our strategy to extend and diversify our service offering in a sustainable manner.
The acquisition enhances our service offering to our existing oil & gas and offshore wind markets by combining our capability, whilst Subcon also bring a number of new solutions to expand our reach into coastal erosion management and the tourism sectors.
I am confident that the Subcon business can thrive under MMA’s ownership and look forward to jointly developing and growing the business with the Subcon team”.