Austal to Acquire BSE Maritime Solutions
Solutions Group. The acquisition of the business is at an enterprise value of AUD 27.5 million. BSE Maritime Solutions is a leading ship repair and support business for defence, commercial, tourism, and luxury vessel customers, operating in Cairns and Brisbane. Current customers include Australian Border Force, BAE Systems, Thales and Svitzer. BSE Maritime Solutions employs approximately 60 permanent staff who will be offered employment with Austal.
The acquisition aligns with Austal’s stated strategy of continuing to build the Company’s key support business. Revenue from Austal’s support segment has grown at an annual rate of 28 per cent over the past four years to reach $360 million in the 2020 financial year, providing reliable ongoing revenue in addition to Austal’s shipbuilding operations.
Austal expects that the new business will generate an EBITDA of AUD 5 million in FY2021 rising to AUD 11 million by FY2025 as more Austal ships covered by current sustainment contracts are delivered to the Commonwealth of Australia.
Agreement terms Under the acquisition agreement Austal will acquire all of the shares in BSE Maritime Group Ltd, Brisbane Slipway Holdings Pty Ltd and Brisbane Slipways and Engineering Pty Ltd.