German container ship giant Hapag-Lloyd has expanded again with a $1bn deal to acquire terminals and logistics interests in South America.
The company is buying 100% of Chilean group SAAM’s SAAM Ports and SAAM Logistics, as well as real estate assets related to the logistics business.
SAAM said the sale will provide major resources to focus on the development and expansion of its towage and air cargo logistics businesses, which account for 55% of Ebitda.
Santiago-based SAAM estimated net profit from the transaction at $400m.
For Hapag-Lloyd, the move is a significant one as cash-rich container lines try to stretch their operations to cover the whole supply chain against a background of falling freight rates.
The shipowner will get its hands on 10 port terminals in six countries in the Americas, as well as bonded warehouses.
Hapag-Lloyd said its presence in Latin America and its terminal business will be further strengthened.
It will form a new company to operate the assets independently.
SAAM was founded in 1960 and has been listed on the Santiago Stock Exchange (SSE) since 2012.
About 4,000 staff will transfer over.
The terminals had a throughput of around 3.5m teu in 2021.
Key strategic aim
“Investing in terminal infrastructure is a key element of our strategic agenda, and Latin America is one of our stronghold markets," said the German group's chief executive Rolf Habben Jansen.
“Acquiring SAAM’s terminal operations and complementary logistics services will help us to further strengthen our business while building up a robust and attractive terminal portfolio,” he added.
Last month, the liner operator said it was acquiring a 49% stake in Italian logistics group Spinelli for an undisclosed amount.
The group has also acquired a stake in JadeWeserPort in Wilhelmshaven, and invested in the construction of Terminal 2 in the Egyptian port of Damietta.
In addition, Hapag-Lloyd has a stake in Container Terminal Altenwerder in Hamburg and in Terminal TC3 of the Moroccan port of Tangier.
“This is good news for SAAM, its shareholders, and also for SAAM Ports and SAAM Logistics, as well as for employees and the communities in which SAAM Ports and SAAM Logistics operate, given the experience and financial strength of the new owner,” said SAAM CEO Macario Valdes.
SAAM is the third-largest tug player globally, buying out its joint venture partner Boskalis in 2019, and adding Intertug, Standard Towing and Ian Taylor Peru, as well as Starnav's assets in Brazil.
