The CIS Group consolidates its position in Brazil with the acquisition of 100% of the capital of the companies Alternativa and Beta (A&B).
Created in 2006 and 2017, A&B are two Brazilian sister companies specialising in the provision of services for the offshore market in Brazil. For the 2018 fiscal year, the A&B Group achieved a pro forma turnover of 14 M€ and holds a backlog of new contracts valued at nearly 75 M$.
A major opportunity in Brazil for CIS
The acquisition of the companies, Alternativa and Beta, by CIS represents a strategic opportunity for many reasons:
- Important logistical assets: a fleet of containers, trucks, and other transportation equipment will enable the entire supply chain to be internalised and thus allow CIS to be the only market player in this position;
- A clientele of new private operators in the offshore market which aids in minimizing a dependence on Petrobras;
- Volumes of purchases that will improve our competitiveness. A strategic position to take advantage of the rebound of the Brazilian market
With this operation, CIS consolidated its position in the offshore Brazilian market with more than 20% of the market shares (compared with 15.6% in 2018) despite the non-renewal of some of the contracts with Petrobras. The Group thus occupies a favourable position to take advantage of the rise of the Brazilian oil market.
2017 and 2018 were marked by the return of investment by major foreign oil groups in Brazil; the NPA (National Petroleum Agency) anticipates a new growth cycle for the period of 2020- 2023.
Régis Arnoux, President and CEO of CIS, said:
“This external growth allows us to take a new dimension in this region with high potential. With the obvious synergies resulting from the new perimeter, we will be able to offer our customers high quality and competitive services to generate sustainable growth.»
