Viking Offshore and Marine Limited (“Viking” or the “Group”) announced today it is buying a 100%-stake in Marshal Systems Pte. Ltd. (“Marshal”), a leading integrator of marine communication, fire and safety equipment and control and instrumentation systems for S$17 million (approximately USD $13 Million), as it continues to execute its “bolt-on” strategy.
Singapore Exchange Catalist-listed Viking is paying S$12 million cash in two tranches and S$5 million worth of Viking shares for Marshal which provides services for integration of marine navigation and communication systems, temperature and level monitoring, designing of electrical systems, monitoring & alarm systems for fire and gas detection.
The acquisition is part of its strategy to built up a suite of complementary capabilities to transform itself into a leading offshore and marine (“O&M”) integrated services provider.
Viking’s other three O&M subsidiaries are Viking Airtech Pte Ltd – a Heating, Ventilation, Air-conditioning and Refrigeration systems specialist, Marine Accomm Pte Ltd which provides accommodation and fit-out for interiors of ships and offshore living quarters, and Promoter Hydraulics Distributor Pte Ltd, a wholesaler of winches and marine decking equipment.
Commenting on the acquisition of Marshal, Viking’s Chairman Mr. Andy Lim, said, “Marshal represents a significant piece in the bolt-on strategy of Viking in the O&M businesses. Our range of services is now very compelling, offering economies of scale and increased opportunities for cross-selling as we step up our overseas expansion.”
“All our operating units are already actively executing the strategy and synergistically engaged on overseas projects in unison, and we are seeing early results” he said.
For the six months ended 30 June 2010 (“1H2010”), Marshal recorded an operating profit of S$3 million on S$9.4 million in revenue, and a gross profit margin of approximately 50%.
Separately, Viking announced that it has acquired a property at 21 and 23 Kian Teck Road for a cash consideration of approximately S$10.1 million. All the O&M activities are expected to re-locate by February 2011 to the new facility which has a gross floor area of approximately 69,000 square feet and a land size of 133,000 square feet.
Following the relocation, Viking will dispose its existing facility located at 12 Gul Street 3, proceeds of which will be utilized to fund the acquisition of the new facility.
“To emerge as a leading one-stop O&M specialist, we need to harness economies of scale and integrate the “soft aspects” such as management, administration, systems and
IT. We have already inducted management talent at the senior and middle levels to achieve this operational streamlining which will complement the physical relocation and integration. What’s more, it makes economic sense in the medium-term as we rationalize our real-estate spending,” Mr Lim said.
In 1H2010, Viking reported net profit of S$5.9 million on revenue of S$35.4 million.
About Viking Offshore and Marine Limited
Listed in 2000 as Novena Holdings Limited, the Group was re-named Viking Offshore and Marine Limited in 2010 when it acquired leading HVAC&R specialist Viking Airtech Pte Ltd, marking the first step in its strategic foray into the offshore and marine (“O&M”) sector.
An industry leader with a track record of over 300 projects valued at more than S$100 million secured over the last three years, Viking Airtech is the preferred integrated solutions provider to shipyards and vessel owners in the PRC and South-East Asia, offering design, engineering, manufacturing, project management and commissioning of HVAC&R systems. It has received numerous awards for outstanding safety, performance standards and is supported by a global after-sales service network.
In line with the Group’s vision to be the leading integrated O&M solutions provider, Viking announced in July 2010 it would acquire controlling stakes in: (i) 100% stake in Promoter Hydraulics Distributor Pte Ltd – a specialist in winches, power packs and marine decking equipment – and (ii) 55% stake in Marine Accomm Pte Ltd – a turnkey project integrator of offshore accommodation and fit-out specialist. These acquisitions contribute to Viking’s bolt-on strategy by adding competencies to the Group’s HVAC&R competencies, enlarging its suite of services and customer base.
In addition, the Group’s business also includes equity investments and investment holdings in two operating subsidiaries, Chuan Seng Leong Pte Ltd (Fast Moving Consumer Goods) and Shine@Spring Pte Ltd (Beauty Wellness Products).
Source: vikingom, October 18, 2010;