Cathay-backed SeaOwl acquires Ogas Solutions

Cathay did not inject more equity into SeaOwl for the transaction, a source close to the deal confirmed. The company financed the acquisition with cash from its own balance sheet. However, the same source said Cathay could be considering a refinancing transaction in the future.

With Cathay's backing, SeaOwl is acquiring 100% of Ogas Solutions' capital. 

The company says the main point of the acquisition was to expand SeaOwl's array of services, creating a more integrated offering, and to help extend its international reach. The newly formed group will employ 1,300 people, and its turnover will exceed the €100m mark.

SeaOwl believes it will benefit in particular from Ogas's strategic positioning in Africa, as well as in Asia, where the group makes half of its turnover, mostly in Indonesia, Malaysia, Singapore and Thailand. Ogas will keep its headquarters in Bangkok after the merger.

The acquisition comes shortly after the bolt-on of Wellstaff in April 2016. eaOwl had previously bolted on Fortiori in July 2013. With Cathay as shareholder, SeaOwl is aiming to grow internationally via an M&A strategy. The business has already developed its presence in Africa and south-east Asia, and is now looking to expand to the rest of Asia, the Middle East and South America.

SeaOwl's annual sales are expected to grow to €90m by 2019, according to the company's growth estimates.

Previous funding
In June 2015, Cathay acquired a minority stake in SeaOwl. The transaction consisted of fresh capital and a partial cash-out of existing shareholders, with Cathay becoming SeaOwl's largest individual shareholder. Management retained a minority stake, as did a number of entrepreneurs and individual investors, as well as VC Entrepreneur Ventures, which first backed the company in 2009. Market sources placed the value of Cathay's investment around the €15m mark. The investment was made through the funds Cathay Capital II and Sino French SME. A €10m debt packaged underwritten by several banks had also supported the transaction.

Company
Founded in 2008 as V.Navy by executives of V.Ships France and V.Ships, SeaOwl is a provider of specialised asset management and manpower services to the shipping, defence and energy industries. It was rebranded as SeaOwl in 2013 to better reflect the company's activity.

Headquartered in Antony, the company operates across France, Africa and south-east Asia, and has been targeting clients within the gas and marine professional training sector since 2014. The group registered a €60m turnover for 2015 and currently employs 300 people.

Ogas was founded in Thailand in 1999, serving the oil & gas exploration and production sector for large operating companies in south-east Asia, Europe and Africa. The group offers contracting, technical services and recruitment, project management, maintenance and inspection, and conceptual design, among other services to the energy industries. Headquartered in Bangkok, the company registered a $72m turnover for 2015 and employs around 1,000 people.

People
Cathay Capital – Mingpo Cai (CEO); Edouard Moinet (managing partner); Charles Bonnassieux, David An (associates).

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