A.P. Moller Holding Targets Top Spot in Offshore Wind with Maersk Supply Service Buy

March 20, 2023, by Adnan Durakovic

Denmark’s A.P. Møller Holding (A.P. Moller Holding) has entered into an agreement to acquire Maersk Supply Service from A.P Møller – Mærsk.

The ambition is to establish a leading offshore marine company servicing the offshore wind industry by building on the solid and extensive capabilities and assets, which Maersk Supply Service today offers mainly to the offshore oil & gas industry, the private investment company said.

The value of the transaction is USD 685 million (enterprise value), reflecting an EV/EBITDA multiple of 27.4x based on EBITDA for full-year 2022, A.P Møller – Mærsk said.

Over the last years, A.P. Moller Holding has pursued several initiatives and investments to reduce carbon emissions and accelerate the transition to green energy. The company has invested in recyclable plastics, wind turbines, cooling solutions, geothermal energy, and has supported its companies’ transition to green fuel in shipping.

Acquiring Maersk Supply Service and accelerating the transition from solely servicing the oil and gas energy sector to also serving the growing offshore renewable energy market, including offshore and floating wind, is a natural strategic priority for A.P. Moller Holding, the company said.

”The capabilities and vessels Maersk Supply Service have built over more than 50 years supporting the oil and gas energy industry are much needed within offshore renewable energy, especially in the wind industry,” Martin Larsen, CFO at A.P. Moller Holding, said.

”As new owners, we will drive a transition of Maersk Supply Service to over time become a leading offshore marine company servicing the offshore wind industry. At the same time, we are pleased that this concludes the separation of energy related activities from A.P. Moller – Maersk as initiated in 2016.”

The transaction is subject to certain customary regulatory approval and is expected to close in the second quarter of 2023.

”We are very pleased to see Maersk Supply Service will be able to continue to further develop new solutions for the green transition of the offshore sector under a new long-term ownership. This transaction validates the excellent work done by the team in the last years. At the same time it marks the completion of our initial decision to divest all energy related activities and focus on truly integrated logistics,” Patrick Jany, CFO at A.P. Moller – Maersk, said.

Maersk Supply Service will continue trading under its current name and will be using the Maersk seven-pointed star logo as part of its brand.

The transaction includes a wind installation vessel, which when finalized is expected to establish Maersk Supply Service as a leading offshore wind contractor.

As the transaction is between related parties, a fairness opinion has been obtained from DNB Bank ASA. The fairness opinion confirms that the transaction value is fair from a financial point of view.