Topaz provides international critical logistics solutions and operates a fleet of 117 modern, versatile vessels, mostly in the Caspian Sea, MENA, and West Africa regions
DP World has announced the acquisition of 100% of Topaz Energy and Marine, an international marine logistics operator, from Renaissance Services and Standard Chartered Private Equity/Affirma Capital for a value of $1.07bn (£854m).
Topaz provides international critical logistics solutions and operates a fleet of 117 modern, versatile vessels, mostly in the Caspian Sea, MENA, and West Africa regions.
In addition, Topaz maintains long-lasting relationships with various international and national oil companies, including BP, Chevron, Dragon Oil, Dubai Petroleum, ExxonMobil and Tengizchevroil.
DP World group chairman and CEO Ahmed Bin Sulayem said: “We are pleased to announce the acquisition of Topaz, which further strengthens DP World’s position as a world-leading operator in maritime logistics services.
“In recent years, we have been investing selectively in the marine logistics sector in companies with high revenue visibility, consistent track record and strong customer relationships. This latest acquisition complements the operations of our P&O Maritime Services (POMS) business, which maintains over 300 vessels globally.”
DP World to increase presence in the industry with the acquisition
The transaction is expected to support DP World to further strengthen its presence in the global logistics and marine services industry.
DP World, an international port operator, was established in 2005 as a result of the merger between Dubai Ports Authority (DPA) and Dubai Ports International (DPI).
The Caspian Sea marks the largest inland water body in the world, and one of the most strategic oil basins featuring approximately 6% of global oil reserves.
Topaz holds a strong position in its core Caspian Sea market, characterized by long-term contracts and high barriers to entry.
The company’s continuing focus on securing long term strategic contracts is the driving force for it to outperform the market, and achieve contract backlog of $1.6b (£1.2bn) by 31 March 2019, which far exceeds industry benchmarks.
Sulayem added: “Much like DP World, Topaz has evolved its business, offering customers a range of logistics solutions and helping the Company outperform the industry. We believe that this innovative approach, together with the increased scale, will allow the combined Topaz and P&O Maritime Services business to drive efficiencies and earnings growth.
“Furthermore, this new partnership opens the door for DP World to explore new business areas more extensively, for example, increasing transit volumes through Azerbaijan within the East-West trade corridor. This transaction is in line with our strategy to grow our presence in marine logistics and become a solutions provider to end customers. We look forward to welcoming the Topaz team into the DP World family.”