DOF Buys Maersk Supply Service for $1.1B and Maersk Spins-Off Wind Business

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Norway’s DOF Group will pay approximately $1.1 billion to acquire Maersk Supply Service further consolidating the offshore service sector focusing on the oil and gas sector. The deal comes just a year after A.P. Moller-Maersk sold the company to A.P. Moller Holding and is a further step in the restructuring of the industry.

Under the terms of the agreement, DOF will pay $577 million in cash and issue new shares to A.P. Moller Holdings which will become a 25 percent owner of the combined company. Maersk Supply Service will undergo a further restructuring separating its offshore wind installation business and its assets in Brazil with DOF buying the company and 22 vessels, consisting of eight high-specification CSV vessels, 13 high-specification AHTS vessels, and one cable layer. After completing the deal, DOF Group’s total fleet will be 65 owned vessels and a total of 78 offshore/subsea vessels.

They highlight that the deal will create one of the largest oil service companies listed on the Oslo Stock Exchange with an estimated market capitalization of $2.3 billion. According to the companies, the combined company to be known as DOF will provide a comprehensive offering and be a major integrated service provider for the energy industry. 

DOF CEO Mons Aase highlights the combined company will have the largest fleet of CSVs and high-end AHTS vessels. He said it will enhance the customer experience through increased scale, global reach, and industry-leading services.

The two businesses’ operations are said to be strategically and geographically complimentary. They expect the combination will spur further growth opportunities. The transaction is subject to standard approvals and is expected to close during the fourth quarter of 2024.

“This long-term solution for Maersk Supply Service’s OSV activities together with DOF Group is founded on our shared values and unwavering commitment to safety and efficiency of our operations. The combination of our talented employees, modern fleet and geographical spread will create a leading offshore service provider characterized by unique scale and a wide range of product and service offerings across key markets for the benefit of our customers,” said Christian Ingerslev, CEO of Maersk Supply Service.

Under the terms of the agreement with DOF, the offshore wind sector has been carved out from Maersk Supply Service. In March 2024, Maersk Supply Services announced it would partner with Louisiana-based Edison Chouest Offshore for the offshore wind business. Maersk has a large wind installation vessel currently under construction at Seatrium due in 2025 and with Edison Chouest, they plan to develop a feeder supply network to move materials from shore to the installation vessel.

A.P. Moller Holding reported today the launch of a new company Maersk Offshore Wind which takes the operations for the offshore wind business from Maersk Supply Service. The installation vessel is expected in mid-2025 and is under contract to provide services to the Empire Wind project in New York being developed by Equinor.

Maersk Supply Service was launched in 1967 as the first Scandinavian offshore company and focused on the oil and gas sector. A.P. Moller-Maersk sold the company in March 2023 to its parent company, the family investment company, as the final step for the shipping line to exit the energy sector. However, with the prolonged downturn in the offshore energy sectors, Maersk Supply Service continued to reorganize including launching into the offshore wind sector and ordering a wind installation vessel. In 2023 it also exited its operations in Australia and the Pacific to focus on the wind sector and offshore energy.

 

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