DP World-owned Unifeeder has agreed to acquire a majority stake in Singapore-based feeder and shortsea operator Feedertech Group.
The Danish shipowner said it has acquired a 77% stake in the company. Feedertech chairman Ali Maghami, will retain the remaining 23% shareholding.
The deal is expected to close year end. Financial terms of the transaction were not disclosed.
Established in 2003, the Singapore-based group operates two companies; Feedertech, which is a feedering service and Perma, a regional shortsea network.
“Both operate in the same market and connect the fast-growing trade route of Asia-Middle East via the Indian Subcontinent,” Unifeeder said.
The Feedertech Group is said to generate annual revenue of close to $200m from a “diversified customer mix” and transport more than 600,000 teu annually.
“We believe the transaction with Unifeeder, and the support of DP World, will allow us to take the business to the next stage of its growth,” Ali Maghami said.
“Both Feedertech and Unifeeder share similar business models and a desire to reduce inefficiencies, and by combining the expertise of the two entities, we believe we can deliver a high-quality product for our customers.
“Furthermore, being part of the DP World family, will allow us to benefit from their deep relationship with end customers and wide global network.”
Commenting on the deal, Unifeeder chief executive Jesper Kristensen said: “This is yet another strategic step in our vision to build a global presence, offer a broader network of solutions to customers.
“Feedertech’s asset-light business model and approach to preserve the common-user independent platform that focuses on flexibility, reliability and providing sustainable logistic solutions, made it a clear fit for Unifeeder.”
