Cumbrian marine services firm, James Fisher, has finalised the sale of its Rotherham-based subsidiary, Martek Holdings, for £12.1 million. The transaction, which was completed in a cash deal, marks a strategic move for the company.
James Fisher originally acquired Martek Holdings in January 2019 for £9 million, with an additional potential consideration of up to £1 million contingent on meeting profit targets by the end of February 2020. Martek, founded in Rotherham in 2000, is known for its distribution of premium mission-critical safety, monitoring, and medical equipment to the maritime industry. This notable acquisition was completed by a regional fund managed by Foresight Group, alongside Martek’s management team.
The sale agreement includes an initial payment of £10.6 million, with a deferred element of £1.5 million due in two equal instalments on the first and second anniversary of the transaction’s completion date. Martek, which forms part of James Fisher’s Maritime Transport Division, employs around 50 people. In the fiscal year ending December 31, 2023, Martek reported revenues of £11.6 million and a pre-tax profit of £1.4 million.
The divestment aligns with James Fisher’s strategy to streamline its portfolio by divesting non-core assets. The net proceeds from the sale will be utilised to reduce company leverage and strengthen the balance sheet. Along with the recent sale of RMSpumptools, this transaction aims to lower leverage towards a target range of 1.0 to 1.5 times Net Debt to EBITDA.
James Fisher’s CEO, Jean Vernet, commented on the sale, stating: “The sale of Martek continues our strategy to simplify the business portfolio and ensure investment remains focused on our core customer markets, including innovative new product development. We are confident that the business will continue its success under Foresight’s ownership, and on behalf of everyone at James Fisher, I would like to thank the Martek team for their contribution.”
The sale of Martek Holdings is a significant step in James Fisher’s ongoing strategy to focus on core markets and strengthen its financial position. The move is expected to benefit both the company and its stakeholders in the long run.