InfraStrata plc (AIM: INFA), the U.K. infrastructure project specialist that bought the assets of Northern Ireland shipbuilder Harland & Wolff reports that it has acquired another U.K. yard, Appledore Shipyard located in Bideford, North Devon, and will rename it H&W (Appledore).
In a regulatory filing, Infrastrata discloses that it is paying GBP 7 million (about $9.2 million) for Appledore, payable in a mix of cash and shares in a series of four payments spread over a 30 month period.
Infrastrata says it sees significant synergies between Appledore and Harland & Wolff (H&W)
It notes that since its acquisition by Infrastrata, H&W (Belfast) has welcomed a number of vessels, including, ferries, cruise vessels and offshore support vessels. H&W (Belfast’s) core competence lies in vessels that require a dock length in excess of 300 meters. With two dry docks at 356 meters and 556 meters in length, the Belfast yard has the largest drydock capability in the U.K., the second largest in Europe and, therefore, puts it in a unique position in relation to larger vessels.
While Infrastrata sees the mid-sector shipyard space, catering to vessels between 120 meters and 300 meters, to be “busy, crowded and highly competitive.”
H&W (Appledore), on the other hand, with a dock length of 119 meters, will focus on the smaller end of the market and Infrastrata believes that it can achieve a dominant position at two distinct ends of the shipyard market; the lower end of the market at less than 119 meters of dock length, and the upper end of the market, requiring dock lengths of 300+ meters.
“I am delighted that the company has acquired Appledore shipyard and this is another important milestone in the growth of the company,” said Infrastrata CEO John Wood. “We have been fortunate that these assets have become available. The acquisition at this point in time is opportunistic for the company and one that should not be missed. It not only gives us a strategic foothold in mainland U.K. but also makes the overall business highly competitive in the smaller and higher ends of the shipyard market, respectively. I look forward to growing this business along with our flagship Harland & Wolff (Belfast), with the primary aim of attaining a cash break-even status as soon as possible.”
- Much more in the full regulatory filing HERE