AqualisBraemar reveals agreement to purchase LOC Group

Both firms will remain trading separately for up to six months upon transaction completion

AqualisBraemar reveals agreement to purchase LOC Group

Insurance News

By Mia Wallace

The adjusting and consultancy firm AqualisBraemar has entered into an agreement to acquire 100% of the shares of LOC Group in a bid to strengthen its service offering to the insurance sector.

LOC Group, which operates as an international marine and engineering consulting firm under four brand names, LOC, Innosea, Longitude and JLA (John LeBourhis), is a sound fit for AqualisBraemar’s strategy, said AqualisBraemar CEO David Wells (pictured), as it offers a complementary industry footprint.

CEO of LOC Group, Dr R. V. Ahilan noted that the consulting space within the service lines offered by both firms is ripe for consolidation. Customers’ needs are rapidly evolving, he said, and he believes that the joint increased scale and wider global footprint offered by this deal with help cater to these requirements.

Upon completion of the acquisition, the combined group will have a total of 880 employees in 85 offices in 39 countries globally and aims to be a leading global independent offshore energy and marine consultancy firm.

“Our complementary geographical footprint reiterates how this acquisition will allow us to provide the insurance sector with even better local expertise and swifter response times regardless of where in the world they are,” Wells said. “We are combining two well-run businesses to create an even more complete service provider. You would have to look very, very hard to find a better strategic fit than AqualisBraemar and LOC Group. This is a key reason for why key managers have decided to continue with the combined group.”

Dr Ahilan will remain in the joint company in a newly created role as chief energy transition officer. He will support the group’s ambition of 50% of revenues coming from renewables and other sustainability and CO2-reducing activities by 2025. He will also join the combined group’s executive management team.

The purchase price consideration of the agreement which saw AqualisBraemar purchase 100% of the shares in Neptune Midco 1 Limited from the ultimate parent company of the LOC Group, LOC Group Holdings Limited, consists of a combination of US$20.2 million (approx £15.1 million) net cash consideration, subject to customary adjustments prior to closing, plus conditional warrants in AqualisBraemar.

The deal is expected to close on or around December 21, 2020, and the transaction is subject to approval of an equity issue by an extraordinary general meeting (EGM) in AqualisBraemar. The EGM will be held on or about December 14, 2020. AqualisBraemar and LOC Group will be trading separately for up to six months following completion of the transaction.

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