South Africa: DCD Group Acquires EBH

The DCD Group has announced its acquisition of renowned ship repair companies Elgin Brown and Hamer (EBH) South Africa and a portion of EBH Namibia, whereby the national port authority in Namibia (‘NAMPORT’) remains the key shareholder.

The deal, which has been in the pipeline since 2011, has significant implications for the DCD Marine cluster’s capacity to offer a full service to existing and new shipping clients along the entire southern African coastline, from Durban to Walvis Bay and beyond.

Gerry Klos, General Manager of DCD MARINE, explains: “The rationale behind the acquisition was to leverage EBH’s strong brand and DCD MARINE’s established industry track record to boost global competitiveness. The Marine cluster will now be able to offer clients several docking possibilities at various ports spanning the coastline, as well as a greater footprint in terms of workshop and dry dock or floating dock facilities.”

EBH’s core focus is repairs to container and cargo vessels as well as to various offshore supply vessels and dredgers; while DCD MARINE specialises in the management of larger projects related to repairs to vessels and rigs operating in the oil and gas market.

As the oldest ship repair company in South Africa, EBH brings a proud and successful history into the DCD Marine cluster, with more than a hundred years of expertise and experience in ship repair.

DCD Group Acquires EBH

EBH operates from its shipyards in Durban, East London and Cape Town, as well as from its floating docks in both Durban and Walvis Bay.

“EBH is highly respected in the industry,” notes Klos, adding that EBH South Africa and EBH Namibia will continue to operate as separate entities within the DCD Marine cluster.

“EBH will retain the dry dockings, repairs and short-term jobs typically associated with fast turn-around projects. DCD MARINE will at the same time continue to specialise in project management relating to repairs, upgrades and conversion projects to drill ships, drilling rigs, jack-ups and all types of offshore support vessels in the upstream oil and gas markets,” Klos continues.

EBH is looking forward to embracing new opportunities through being part of the DCD MARINE cluster and the DCD corporate stable, according to Rob Deane, General Manager of the EBH Group.

“Being part of a larger group will enhance our service offering to existing clients by giving them more options and increased access to resources and facilities,” Deane says. “Increasing our operational capacities around the southern African coast will also expand our ability to attract new business.”

Hannes Uys, Chief Executive Officer of EBH Nambia, agrees: “The acquisition is a great way of broadening our knowledge and service levels. Ultimately it is our clients who will benefit from our increased market share and will be in a better position to obtain competitive pricing linked to superior service.”

He continues: “The acquisition will reposition EBH Namibia as a full-service provider, and although we have already built a reputable business within Namibia, we wish to expand our target market. DCD MARINE will therefore acquire shares in a company that is already well positioned, and will benefit greatly from our world class marine repair facilities and service acumen.”

Klos adds to this: “There will be a greater skills pool to draw from across the divisions and in terms of facilities, and a greater pooling of market intelligence covering both companies’ areas of expertise.”

EBH Namibia, which focuses more on offshore supply vessels, currently operates two floating dry docks in Walvis Bay, and will be expanding its capacities with the addition of a third floating dry dock in August 2013. This expansion, as well as the acquisition by DCD MARINE, will help to establish Namibia as one of the leading ship repair countries along the west coast of Africa, according to Uys.

“The value proposition that EBH Namibia offers our clients is well aligned with DCD MARINE’s customer-focused culture,” he says.

Like EBH South Africa, EBH Namibia will continue to operate as a separate entity within the DCD Marine cluster, with each company supporting the other as required.

“Whenever clients come to our shores, they are now assured of dealing with a cluster of reputable shipyards, no matter where they may be along the coastline. There are exciting times ahead for all stakeholders in the DCD Marine cluster, and we are looking forward to offering an even more effective, efficient and competitive service to all our clients,” concludes Klos.

Press release, April 25, 2013

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Posted on April 25, 2013

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