Cyan Renewables Buys MMA Offshore for $702M

Cyan Renewables, a leading offshore wind services operator based in Singapore, has announced its acquisition of Australian offshore marine services provider MMA Offshore (ASX:MRM) for USD 702 million. This development is the largest take-private deal in Asia Pacific's offshore wind energy service industry and strengthens Cyan's position as a regional leader. 
 
The transaction highlights the crucial role this sector plays in achieving net zero goals. MMA shareholders will receive a cash payment of USD 1.78 per share, representing a premium of 36% over the average share price over the past three months. The EV/EBITDA ratio stands at an impressive 6.2x. 
 
James Chern, managing partner and CIO of Seraya Partners, Cyan’s main investor, said that "the new deal is transformative and reflects our ability to build and create platforms from scratch." He added that with recent acquisitions in Europe along with this latest one in Australia, Cyan is quickly becoming a world-class leader in emerging sectors. 
 
Co-investors such as Alberta Investment Management Corporation (AIMCo) supported this acquisition through their investments in Cyan Renewables. AIMCo opened its Singapore office in September 2023. 
 
Ben Hawkins, AIMCo's Executive Managing Director, stated that "as an undisputed market leader," Cyan was ideally placed to reap benefits from growing sectors like offshore wind and marine protection while acting as a catalyst for transitioning traditional maritime industries towards greener alternatives. 
 
Lee Keng Lin, CEO of Cyan Renewables, remarked on how acquiring MMA enhanced their leadership status within renewable energy circles, particularly within sectors like offshore wind power generation or broader energy transition topics, which are expected to flourish across key markets, including Australia and the APAC region at large. 
 
Cyan plans to retain all existing staff working under MMA while expanding upon their skill sets so they can better penetrate both global and Asian markets, catering specifically towards providing support services related to offshore wind farm operations. 
 
MMA's leadership within Australia, along with their fleet of 20 offshore vessels, will boost Cyan’s presence in the Asia-Pacific region. MMA can leverage Cyan as a capital partner and benefit from its expertise in offshore wind farm installation, operations, and maintenance to enhance service offerings and operational efficiencies. 
 
David Ross, Managing Director at MMA, said that "we are excited to be part of the Cyan Group to accelerate progress towards achieving net zero goals." He added that combining both companies' respective strengths would lead towards fostering innovation while also accelerating energy transition processes across maritime industries globally. 
 
The deal comes amid increasing demand for renewable and clean energy sources worldwide. The wind farm market is projected to expand at a CAGR of 21.4% between 2024 and 2034 due to rising demands for renewable energy resources. Furthermore, with increases in average turbine size (some reaching up to 15 MW), global demand for vessels servicing the offshore wind sector is expected to outpace supply.