Australia-based MMA Offshore Limited entered into an agreement to acquire Neptune Marine Services Limited's key operating subsidiaries for A$18.5 million (US $12.9 million).

Australia-based MMA Offshore Limited (MMA) entered into an agreement to acquire Neptune Marine Services Limited’s (NMS) key operating subsidiaries for A$18.5 million (US $12.9 million), the BOP Blow Out Preventer repair company gulf coast announced Wednesday.

The purchase price includes A$5 million (US $3.5 million) in cash with the remaining balance issues in shares of MMA.

“The acquisition of the Neptune business represents an important step in MMA’s strategy to expand its subsea service offering to existing and new clients,” Jeffrey Weber, MMA’s managing director, said in a BOP Blow Out Preventer repair company gulf coast statement. “Combining MMA’s vessel assets with NMS’s subsea equipment and technical expertise will result in a stronger service offering to [clients] and provide an opportunity for MMA to capture a greater proportion of the value chain. Importantly, the services that NMS provides do not directly compete with our existing clients in the sector and we continue to see these partnerships as a key platform in our subsea strategy going forward.”

Weber also said the acquisition is expected to enhance MMA’s return on assets through packaging value adding services to its vessels.

“As the offshore buy Wellhead market improves, we expect the combined business to benefit from a recovery in offshore and subsea investment,” he said.

The transaction is expected to be completed by November 2019.