DFDS has agreed to acquire Turkey’s U.N. Ro-Ro as it looks to expand its ferry routes across the Mediterranean.
The Danish ferry operator said it has acquired a 98.8% stake in the company from Turkish private equity firms Actera Group and Esas Holdings.
It is paying EUR 950m ($1.17bn) on a debt free basis, which it says will be mainly funded through committed debt financing.
The acquisition, which is expected to be earnings accretive within the first year, expands DFDS’ route network to include the fast growing transport market between Turkey and the European Union (EU).
“U.N. Ro-Ro is highly profitable and the leading operator with a market share twice that of the next competitor in Turkey,” DFDS said.
“With the acquisition we are expanding into one of Europe's most attractive freight markets which is operationally similar to northern Europe.
“This gives us opportunity together with the existing strong management team to leverage our network, fleet, experience and skills to develop the business further while supporting the growth of U.N. Ro-Ro’s customers.”
The transaction is subject to approval by the Turkish, Austrian and German competition authorities as well as Italian authorities in relation to the transfer of the Trieste terminal as a strategic asset.
Closing of the transaction is expected to take place in June 2018, DFDS said.
