ADNOC Logistics and Services (ADNOC L&S), a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has significantly enhanced its global standing by acquiring an 80% stake in Navig8 TopCo. Holdings Inc. for $1.04 billion. This strategic acquisition bolsters ADNOC L&S’s position as a key player in energy maritime logistics, providing a solid platform for expanded global operations and long-term shareholder value. Additionally, the transaction includes a contractual commitment to acquire the remaining 20% stake by mid-2027, further consolidating ADNOC L&S’s ownership of Navig8.

Navig8 is a renowned international operator of shipping pools and a leader in commercial vessel management. The company brings a modern fleet of 32 tankers and operates in 15 cities across five continents, along with investments in technical management services and marine fuel provisioning at over 1,000 ports globally. Its diverse capabilities in the maritime sector will complement ADNOC L&S’s existing operations and align with its strategic growth objectives.

Abdulkareem Al-Masabi, CEO of ADNOC L&S, described the acquisition as a pivotal moment in the company’s transformational growth journey. “By integrating Navig8’s extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders. This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company,” he said.

This acquisition builds on ADNOC L&S’s 2022 integration of Zakher Marine International (ZMI), an Abu Dhabi-based operator of offshore support vessels. ZMI added the world’s largest fleet of self-propelled jack-up barges to ADNOC L&S’s portfolio, expanding its fleet to over 300 vessels and solidifying its position as the Middle East’s largest integrated logistics provider. The addition of Navig8 further diversifies ADNOC L&S’s service offerings, which now include commercial pooling, bunkering, technical management, and industrial and digital solutions with a strong emphasis on environmental, social, and governance (ESG) principles.

The acquisition is structured to ensure economic ownership of Navig8 from January 1, 2024. ADNOC L&S will acquire the remaining 20% stake in 2027, with deferred consideration valued between $335 million and $450 million, depending on EBITDA performance during the interim.

Navig8’s CEO, Nicolas Busch, expressed enthusiasm for the partnership, stating, “We are excited to join forces with ADNOC L&S and the wider ADNOC Group. This achievement highlights the exceptional efforts of the Navig8 team over the past two decades, setting the stage for this next phase.”

The deal is expected to yield immediate financial benefits, with ADNOC L&S projecting a 20% increase in earnings per share for 2024 compared to 2023. Additionally, annual synergies of at least $20 million are anticipated by 2026, underscoring the value-added potential of this transformative acquisition.