ADNOC Logistics & Services to acquire Navig8

ADNOC Logistics and Services Plc (ADNOC L&S) has announced an agreement to acquire Navig8 TopCo Holdings Inc. (Navig8), an international shipping pool operator and commercial management company, with an owned fleet of 32 modern tankers and a presence in 15 cities across five continents.

The agreement, which is subject to customary regulatory approvals, will accelerate the company’s global expansion as it progresses towards its medium-term strategic growth investment target, just one year after its listing.

Under the terms of the agreement, ADNOC L&S will acquire 80 per cent of Navig8 for $1.04 billion (AED 3.8 billion) with economic ownership transfer effective from January 1, 2024.

It will further acquire the remaining 20 per cent ownership in 2027 for a deferred consideration of $335 million to $450 million (AED 1.2 billion to AED 1.7 billion).

The acquisition aligns with the ADNOC L&S transformational growth strategy and investment target. The first full year of investment is projected to boost earnings per share by at least 20 per cent for ADNOC L&S shareholders.

Moreover, Navig8 delivered over $400 million (AED 1.5 billion) EBITDA in 2023, equivalent to 44 per cent of ADNOC L&S’ EBITDA in the same period.

ADNOC L&S will unlock significant value through cost-saving synergies, with savings targets of over $100 million (AED 375 million) per annum already identified through optimising technical management costs and bunker spend.

Navig8’s global footprint in 15 cities across five continents and its owned fleet of 32 modern tankers will greatly enhance ADNOC L&S’ international profile and expand its blue-chip customer base.

ADNOC L&S’ service offering will include pooling, commercial management, bunker trading, technical management and ESG-focused digital solutions.