DP World has acquired iconic UK shipping company P&O Ferries for £322m ($420m), despite the uncertainty surrounding Brexit.
“This transaction is in line with our strategy to grow in complementary sectors, strengthen our product offering and play a wider role in the global supply chain as a trade enabler,” DP World said.
It added that the transaction offered “compelling value strategically and financially”, but gave no further details.
P&O Ferries operates a fleet of 21 vessels on the short sea, North Sea and Irish Sea sectors across 11 ports, while P&O Ferrymasters provides supply-chain solutions in 19 European locations.
P&O Ferries handles more than 2.5 million freight units per year, accounting for about 75% of group revenues. In 2017 it reported revenues of £1.1bn and Ebitda of £100m.
We are pleased to announce the return of P&O Ferries back into the DP World family
Sultan Ahmed Bin Sulayem
'Earnings accretive'
Expected to meet DP World said the acquisition is expected to be “earnings accretive” from the first full year of consolidation and is expected to meet DP World’s return targets.
The Dubai-based ports operator said it expected to close the deal in the first half of 2019, subject to customary completion conditions.
“We are pleased to announce the return of P&O Ferries back into the DP World family,” said DP World chairman and chief executive Sultan Ahmed Bin Sulayem.
“P&O Ferries is a strong, recognisable brand and adds a best-in-class integrated logistics provider into our global portfolio.
“Importantly, P&O Ferries provides efficient European freight connectivity, building on last year’s acquisition of Unifeeder.”
DP World said P&O Ferries has delivered a “robust performance in recent years” and it aims to drive further value through “increasing efficiencies” and offering value-added solutions to its clients.
