Home / M&A Activity / Serco to Buy Remaining 50% of Maritime Defense Firm for $108M

Serco to Buy Remaining 50% of Maritime Defense Firm for $108M

Serco Group has signed an agreement to buy the remaining 50 percent equity stake in Australian nautical defense firm DMS Maritime Pty Ltd. from its joint venture partner P&O Maritime Services for $108 million in cash.

According to The Wall Street Journal, DMS Maritime is expected to have net debt of around $40 million on completion, which means the total valuation of the business will be $256 million.

DMS Maritime reported total assets of $67 million on Dec. 31, 2011. Its expected revenue for the year is $128 million with an underlying operating profit of $19 million.

According to the Ian Walker article, Serco’s existing debt facilities will fund the purchase.

Serco will include within its order book the additional 50% it now owns of DMS Maritime’s £500 million order book.

The transaction is expected to be accretive to earnings in the first full year following completion.

Shares closed Tuesday at $8.53, valuing the company at $4.57 billion.

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