Canadian bulker owner Fednav is narrowing its focus to shipping after clinching a major divestment deal to offload its port and logistics interests.
Logistec Stevedoring, a subsidiary of Toronto-listed Logistec Corp, has agreed a $105m deal to buy the divisions.
The transaction comprises Canadian and US terminals, including the Federal Marine Terminals arm.
The Pathy family-controlled shipowner is also selling logistics division, Fednav Direct.
The purchase will allow Logistec to strengthen its presence in North America.
The Fednav companies have been operating terminal facilities for more than 50 years, providing stevedoring, handling and warehousing services for bulk, containerised, project and general cargo.
The terminals and logistics division had revenue of $89.8m in 2022.
Logistec will add 11 terminals to its network, bringing its reach to 90 terminals in 60 ports.
A natural fit
The buyer’s chief executive, Madeleine Paquin, said the two groups have had a long-standing business relationship for decades.
“Joining forces is a natural fit, as we share the same values,” she added.
Fednav CEO Paul Pathy said the deal will ensure continuous growth for the divested units.
“In the coming years, Fednav will focus on its pure-play shipping business and continue its expansion journey,” he said.
“Known to innovate and provide the highest standard of service for over 75 years, Fednav has an exciting new chapter ahead.”
Fednav is Canada’s largest dry bulk company, with a modern fleet of about 120 ships.
Top team augmented
Of these, about 60 are owned, worth $1.4bn, according to VesselsValue.
In January, the group boosted its senior management team with the appointment of Geneva-based Frank Mortensen as head of strategy.
Mortensen, the former chief executive of Maersk Broker Bulk Chartering, left last June after leading the company for six-and-a-half years.
