Mermaid Marine has announced the purchase of Singapore-based oil and gas marine services provider Jaya Holdings for $S625 million ($A550 million).
Mermaid said the Singapore Stock Exchange-listed company had a fleet of 27 vessels, two strategic ship yards in Singapore and Batam, Indonesia, and plans to add six new high-specification vessels, with three vessels scheduled to enter the fleet by early FY2015.
The fleet operates across South East Asia, the Middle East, West Africa and more recently, East Africa.
Mermaid said it would fund the acquisition through a $317 million capital raising and new debt facilities with existing lenders NAB and ANZ.
The raising will be in the form of a $217 million rights issue priced at a discounted $2.40 a share and an institutional placement to raise $100 million.
Mermaid said the acquisition delivered immediate scale to its international operations and represented a strategic platform for further growth.
It expected the acquisition to deliver mid-single digit earnings per share accretion on a 2014 full-year pro forma basis.
Jaya generated pro forma revenue of $US117 million ($A121 million) and EBITDA of $US55 million ($A57 million) for the year to December 31.
Mermaid managing director Jeff Weber said the acquisition represented an excellent opportunity to deliver immediate scale for the company in international markets.
"The acquisition provides increased geographic diversification for our vessel operations through the addition of a complementary vessel fleet which already has operations in markets across South East Asia and the Middle East," he said.
"Ownership of two shipyards located in Asia will allow us to combine Mermaid's existing marine technical expertise with original equipment suppliers' technical shipbuilding capability."
Mermaid also announced today a first-half profit of $24.2 million, down 25.5 per cent on the previous corresponding period.
The result came on revenue of $253.5 million, up 14.2 per cent.
The company declared an interim dividend of 5.5 cents a share, in line with the previous corresponding period.
Mermaid chairman Tony Howarth said the company's trading performance was lower than expected, in line with guidance issued in November last year.
"A number of key projects and drilling programs commenced later than expected during the first half, which impacted both supply base and vessel utilisation resulting in a softer overall performance for the period," he said.
However Mr Weber said activity across the company's vessel fleet and supply base had increased in recent months and the company expected the second half to be stronger, with full-year NPAT in line with last financial year, consistent with previous guidance.
Mermaid shares, which were in a trading halt, last changed hands for $2.81.