Join our daily newsletter At The Bell to receive exclusive market insights
- Global shipbuilder Austal (ASB) has signed to buy ship repairers BSE Maritime Group for $27.5 million
- The purchase is in line with Austal’s strategy of continuing to build the company’s key support business
- Austal is expecting the new business to bring in earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $5 million in 2021
- This figure is expected to rise to $11 million by 2025
- On the market this afternoon, Austal is down 0.63 per cent and trading for $3.17 per share
Austal (ASB) has announced the purchase of ship repairer BSE Maritime Group for $27.5 million and is moving along with growing its global support business.
BSE Maritime is an Australian-based leading ship repair and support business for defence, commercial, tourism and luxury vessels. Its customers include the Australian Border Force, BAE Systems, Thales and Svitzer.
The purchase is in line with Austal’s strategy of continuing to build the company’s key support business. Revenue from Austal’s support business has grown at an annual rate of 28 per cent over the past four years. For the 2020 financial year, the support business reported a mega $360 million.
“In particular, the acquisition provides Austal with dockyard and ship lift capability in the northeast region of Australia – including the Pacific’s largest mobile boat hoist, capable of moving 1120 tonnes – supporting our existing and future customers and reinforcing our commitment to grow in the region,” Austal CEO David Singleton said.
“It further enhances our in-service support capabilities, currently provided
across multiple facilities in Cairns, for the Austal designed and constructed Cape-class and Guardian-class Patrol Boats,” he added.
Austal is expecting the new business to bring in earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $5 million in the 2021 financial year. This is expected to rise to $11 million by 2025 financial year as more Austal ships, covered by current contracts, are delivered to the Commonwealth of Australia.
On the market this afternoon, Austal is down 0.63 per cent and trading for $3.17 per share at 2:31 pm AEDT.
