Braemar Shipping Services is renewing its focus on shipbroking after completing the planned disposal of its logistics division Cory Brothers.

The UK-listed group said the buyer is Vertom Cory Holdings for a price of between £10.25m ($13.75m) and £15.5m, spread over three earn-out periods ending on 31 December 2024.

The all-cash deal will see a first payment of £6.5m, and three more instalments based on future profit.

The disposal marks the end of Braemar’s strategy of simplifying its services to focus on shipbroking under chief executive James Gundy.

A solution for the non-core Cory Brothers operation had been under consideration for some time.

Braemar had originally planned to run it as a joint venture with Dutch logistics player Vertom, but said in February the deal would be a straight sale.

The shipbroker’s technical services division was sold off in two deals over the past two years.

Cash from the Cory Brothers sale will be used to cut debt and strengthen the balance sheet.

Cory Brothers comprises a port and hub agency business and a liner and freight forwarding business.

The business services UK ports, the port of Singapore, and ports in North America and the Netherlands, and has joint arrangements with a number of worldwide agency partners.

Profitable business

The buyer is a newly formed subsidiary of Vertom that has similar operations, mainly in northern Europe.

For the year to 28 February 2021, Cory generated revenue of £28.1m and underlying operating profit of £1.2m.

The company’s gross assets were £27.9m as of 31 August, with net assets of £4.1m.

Cory managing director Peter Wilson and finance director David Noble will take up similar roles at the new company.

Gundy said: “I am pleased that the buyers of Cory are a long-term strategic partner. We look forward to continuing to work with them under their new ownership and seeing the business thrive."

Vertom managing director Arjan de Jong added that the deal comes after years of close cooperation.

“This acquisition enables us to create a strong European port agency and freight forwarding division under the name VertomCory,” he said.