DP World has announced its acquisition of P&O Ferries, the holding company of P&O Ferries and P&O Ferrymasters, for a purchase consideration of US$421 million.
P&O Ferries, which operates across multiple countries in Europe, consists of a “market leading” roll-on, roll-off (ro-ro) ferry operation and a transportation solutions provider.
According to a statement, P&O Ferries operates a fleet of 21 vessels across 11 different ports, while P&O Ferrymasters provides logistics services in 19 European locations.
Rashid Abdullah, DP World, discusses effective ways to link the global supply chain in a recent Port Technology technical paper
In addition to this, P&O Ferries handles over 2.5 million freight units every year, accounting for 75% of P&O’s overall group revenue.
The acquisition, which is still pending customary completion conditions, is expected to increase earnings from the first full year of consolidation, as well as meeting DP World’s return targets.
I am personally very pleased to be able to share the news that P&O Ferries, @poferries is re-joining the @DPWorld family. P&O Ferries is a strong, recognisable brand and adds a best-in-class integrated logistics provider into our global portfolio. https://t.co/gKwwTIId3N
— Sultan Ahmed Bin Sulayem (@ssulayem) February 20, 2019
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are pleased to announce the return of P&O Ferries back into the DP World family.
“P&O Ferries is a strong, recognisable brand and adds a best-in-class integrated logistics provider into our global portfolio. Importantly, 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.”
— Port Technology (PTI) (@PortTechnology) February 14, 2019
The chairman also asserted how DP World aims to drive further value to customers of P&O Ferries by increasing efficiencies and offering new solutions.
“Overall the transaction offers compelling value strategically and financially, and we look forward to P&O Ferries contributing to driving shareholder value in the coming years.”