New Wave Media

June 23, 2022

MMA Offshore to Buy Rigs-to-Reefs Specialist Subcon for $8.4M

Credit: MMA Offshore

Credit: MMA Offshore

Australian offshore support vessel owner MMA Offshore has agreed to buy Perth-based Subcon, a company that provides innovative stabilization, coastal erosion, and engineered reef solutions to the oil and gas, offshore wind, coastal infrastructure, and tourism sectors.

The total consideration for the transaction is $8.4 million comprising $4.2m cash and $4.2m in MMA ordinary shares.

"The acquisition is aligned with MMA’s purpose and strategy bringing a range of new environmental marine solutions within MMA’s capability," MMA Offshore said.

"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," MMA Offshore said.

MMA Offshore said the acquisition supported the company's growth objectives, added enhanced capability to service its existing markets of oil and gas and offshore wind through the combination of MMA and Subcon’s service offering.

The deal, according to MMA Offshore, allows the company access to new markets with significant potential for growth through a range of
innovative solutions including oil and gas decommissioning through Subcon’s rigs to reef offering, attenuating reef systems to combat coastal erosion, scour protection technology and recreational reef developments;

Completion of the transaction is subject to a number of customary conditions precedent and is expected to occur in July 2022.

The February 2022 eMag edition of Marine Technology Reporter looks inside the world of oceanography.
Read the Magazine Sponsored by

Creating a Digital Twin of the Ocean

Marine Technology Magazine Cover May 2022 -

Marine Technology Reporter is the world's largest audited subsea industry publication serving the offshore energy, subsea defense and scientific communities.

Marine Technology ENews subscription

Marine Technology ENews is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for MTR E-news