DP WORLD ACQUIRES UK- BASED P& O FERRIES FOR $ 421M

Dubai port operator DP World has acquired European logistics business P&O Ferries for GBP322m ($421m), it has announced.

UK-based P&O Ferries consists of a roll-on roll-off (Ro-Ro) ferries operation and a European transportation and logistics solutions provider, P&O Ferrymasters.

The company operates a fleet of 21 vessels on the Short Sea, North Sea and Irish Sea sectors across 11 ports and handles over 2.5 million freight units per year, accounting for approximately 75 per cent of group revenues.

P&O Ferry masters provides supply chain solutions in 19 European locations, and reported revenues of GBP1.1bn ($1.4bn) and EBITDA of GBP100m ($131m) in 2017.

The acquisition is expected to be “earnings accretive from the first full year of consolidation and is expected to meet DP World’s return targets,” a statement said.

The transaction is subject to customary completion conditions and is expected to close in the first half of 2019.

Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “We are pleased to announce the return of P&O Ferries back into the DP World family. P&O Ferries provides efficient European freight connectivity building on last year’s acquisition of Unifeeder.

“This transaction is in line with our strategy to grow in complementary sectors, strengthen our product offering and play a wider role in the global supply chain as a trade enabler.”