DP World said it has fully acquired Topaz Energy and Marine from Renaissance Services and Standard Chartered Private Equity /Affirma Capital for an enterprise value of US$1.08 billion.
Topaz provides energy marine logistics and solutions, operating a fleet of 117 vessels, predominantly in the Caspian Sea, MENA, and West Africa regions.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said the acquisition strengthens its position in the maritime logistics market.
“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, and this acquisition complements the operations of our P&O Maritime Services (POMS), which maintains over 300 vessels globally,” he said.
Much like DP World, Topaz has evolved its business, offering customers a range of logistics solutions and helping the company outperform the industry. 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,” he added.
Bin Sulayem said the new partnership opens the door for DP World to participate more extensively in new business areas including increasing transit volumes through Azerbaijan under the East-West trade corridor.
This transaction is in line with the company’s strategy to grow our presence in marine logistics and become a solutions provider to end customers.”
Topaz has a particularly strong position in the Caspian Sea - 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, Saudi Aramco and Tengizchevroil.
Topaz’s focus on securing long term strategic contracts has allowed it to outperform the market, and the company’s market-leading contract backlog of $1.6 billion as of 31 March 2019, far exceeds industry benchmarks, demonstrating the success of the company’s strategic approach.
For DP World, the transaction supports its objective of increasing the company’s presence in the global logistics and marine services industry.