Completes 100% acquisition at €660 million
DP World has announced the successful closing of the acquisition of 100% of the Unifeeder Group to expand its feeder and shortsea network in Northern Europe.
Unifeeder operates the largest and most densely connected common user container feeder and an important and growing shortsea network in Europe, serving both deep-sea container hubs and the intra-Europe container freight market.
The transaction valued at €660 million will enhance DP World’s presence in the global supply chain and broaden its services to customers – both shipping lines and cargo owners – with a view to ultimately reduce inefficiencies and improve the competitiveness of global trade.
Unifeeder’s current operations, which offer a unique platform for independent logistics solutions, are complementary to DP World’s existing business and offer future growth opportunities.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are delighted to close the Unifeeder acquisition and add their business to our portfolio.
“With Unifeeder, we are acquiring a leading port related logistics solutions provider in Europe as part of our strategy to grow in complementary sectors.
“This transaction is very relevant to our business and provides future growth opportunities, especially that feedering and shortsea/regional transports with smaller vessels have become more important for shipping lines with the use of larger vessels by shipping alliances.
“Our core business is and will continue to be the container terminal, but this acquisition fits with our strategy to diversify our revenues and extend our core business to play a wider role in the global supply chain and connect directly with cargo owners and aggregators of demand, ultimately improving the quality of our earnings and driving returns.”
Jesper Kristensen, CEO, Unifeeder A/S, said: “We are excited to be part of the DP World Group and we look forward to leveraging their expertise to accelerate growth and take the the business to the next level.
Today we are starting a new chapter in Unifeeder’s growth story and we are confident that, with our shared vision for an efficient supply chain and a value added customer offering, we lay a strong foundation for further success and growth.”
Unifeeder’s business is cash generative and operates on a highly flexible cost base. It has reported revenue of €510 million in 2017 and EBIT margins in line with other asset-light logistics operators.
Read More: DP World CEO: 2019 to be Challenging