mynth
10/2018

WELAPTEGA acquired by ASHTEAD TECHNOLOGY

CANADA Industrial Services / TIC (Testing, Inspection, Certification) REV 1m EUR - 100m EUR

Context

Ashtead Technology announced on 22 November 2018 the acquisition of Welaptega Marine, the Halifax-based specialist in mooring system inspection and integrity engineering. Chief executive Tony Hall stayed to lead the business from Nova Scotia. The purchase strengthened Ashtead Technology’s inspection, maintenance and repair capabilities, adding Welaptega’s measurement technologies and engineering services to its own equipment and services portfolio. Chief executive Allan Pirie called it a significant step in the group’s IMR strategy, giving customers access to an innovator in offshore asset inspection, engineering and integrity solutions, while Hall said joining the group would let Welaptega expand its capabilities and reach more customers internationally. It was Ashtead Technology’s third deal since Buckthorn Partners and APICORP took control of the group in 2016, after TES, and came ten months after it completed a joint venture with Forum Energy Technologies, which created an independent provider of subsea survey and ROV equipment services with a fleet of 19,000 assets.

WELAPTEGA, which reported an EBITDA margin of in 2018, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the Business Services sector (11.4x).

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Target

Founded in 1990 and based in Halifax, Nova Scotia, Welaptega inspects the mooring systems that hold floating offshore platforms in place, and assesses whether they remain fit for service. It developed its own optical chain measurement system and photogrammetry techniques to measure chain links and other mooring components in situ, under water, and produces the engineering analysis that follows. Its tools also clean and inspect wire mooring ropes and other flexible elements such as risers, umbilicals and marine power cables, where marine growth adds weight and drag. Its customers are offshore oil and gas operators managing the integrity of their floating installations.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2018
2017

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REFERENCES

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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Acquirer: ashtead technology