Vallianz Holdings Limited has bought offshore company, OER Holdings for $27.7 million.
Headquartered in Singapore, OER provides manpower services to the offshore industry and has been supplying professional crew to customers worldwide for many years.
In a statement, Vallianz said that the acquisition will allow the group “to attain greater efficiency in the management of crew personnel and raise the value of its services to customers. At the same time, it will also expand the group’s customer base and geographical footprint."
Vallianz will issue 250 million ordinary shares in the capital of the company at a price of S$0.14 per share.
Chief executive officer of Vallianz, Darren Yeo, “The group provides crew personnel as part of our services for our vessels under charters, as well as for third-party vessels. By acquiring OER, we will be able to consolidate the management of crew resources under one roof, and benefit from improved operational efficiency and economies of scale. We can also enhance the value of our services to customers by providing a complete solution to address their manpower requirements.
"Furthermore, we believe there are potential synergies that could be realised from the acquisition of OER. Besides providing an additional source of revenue and income, it will open pathways for the group to new customers and geographical markets, particularly in Asia."
For the full year 2013 OER recorded earnings before tax, interest, depreciation and amortisation of around $5.6 million.
The acquisition follows recent news of the group’s new marine base in Batam, Indonesia.