Cyan Renewables acquisition of MMA Offshore for A$1.1bn strengthens its position in offshore wind sector

Cyan Renewables acquisition of MMA Offshore marks a historic milestone

Cyan Renewables, a leading offshore wind services platform based in Singapore, has made headlines with its landmark acquisition of Australian offshore marine services provider MMA Offshore for A$1.1 billion (US$702 million). This transaction, the largest take-private deal in Asia’s offshore wind energy services sector, solidifies Cyan’s dominance in the Asia Pacific region and underscores the critical role of offshore wind energy in achieving global net-zero goals.

Details of the Cyan Renewables acquisition of MMA Offshore

Under the terms of the Cyan Renewables acquisition of MMA Offshore, MMA Offshore shareholders will receive A$2.70 (US$1.78) per share in cash, representing a 36% premium over the 90-day volume-weighted average share price. The deal values MMA Offshore at an EV/EBITDA ratio of 6.2x, reflecting Cyan’s strategic investment in enhancing stakeholder value.

James Chern, Managing Partner and Chief Investment Officer of Seraya Partners, Cyan’s primary investor, highlighted the transformative impact of the acquisition. He noted that this deal showcases their ability to build and scale platforms from Asia to Europe. Following Cyan’s acquisition of Sentinel in the UK, the Cyan Renewables acquisition of MMA Offshore positions Cyan as a leading player in the offshore wind and marine services sectors.

Investor support for the Cyan Renewables acquisition of MMA Offshore

The Cyan Renewables acquisition of MMA Offshore was supported by a group of co-investors, including the Alberta Investment Management Corporation (AIMCo). AIMCo, which opened its Singapore office in September 2023, participated in the acquisition through its investment in Cyan. Ben Hawkins, AIMCo’s Executive Managing Director for Global Infrastructure, Renewable Resources, and Energy Transition, expressed enthusiasm about the expanded partnership with Seraya. He emphasized Cyan’s strategic positioning to leverage growth in offshore wind and marine protection sectors.

Impact on Cyan Renewables and MMA Offshore

Lee Keng Lin, CEO of Cyan Renewables, described the Cyan Renewables acquisition of MMA Offshore as a significant milestone that strengthens their leadership in the renewable energy sector. He highlighted that integrating MMA Offshore’s maritime services expertise and operational presence in Australia and the broader APAC region will enhance Cyan’s position in the offshore wind industry.

Cyan plans to retain MMA Offshore’s workforce and leverage their expertise and operational model to expand globally in offshore wind support services. This strategic integration will not only enhance Cyan’s service offerings but also drive growth through mergers, acquisitions, and organic expansion.

MMA Offshore’s future within Cyan Renewables

MMA Offshore’s leadership, with its fleet of 20 offshore vessels and deep operations in Asia Pacific, will significantly bolster Cyan’s regional presence. David Ross, Managing Director of MMA Offshore, expressed excitement about joining the Cyan Group, anticipating that Cyan’s expertise in offshore wind farms and investment capability will accelerate innovation and operational excellence in the maritime industry.

Growing demand for renewable energy

The Cyan Renewables acquisition of MMA Offshore comes amid rising demand for renewable energy solutions. According to the International Energy Agency (IEA), global clean energy capacity must triple by 2030 to meet net-zero emissions targets by 2050. The wind farm market is projected to grow at a compound annual growth rate (CAGR) of 21.4% from 2024 to 2034, while the demand for offshore wind vessels is expected to outpace supply due to increased turbine sizes and new project developments.

Background of the deal

In March 2024, MMA Offshore Limited entered into a scheme implementation deed with Cyan MMA Holdings Pty Limited for an all-cash acquisition valued at A$2.60 per share. Cyan Renewables intends to leverage MMA Offshore’s expertise, assets, and operating model to further penetrate the offshore wind support services market while continuing to serve its existing offshore energy and maritime clients.