DFDS will acquire 100 percent of the shares in ferry and logistics company Norfolkline. The total value of the deal is approximately EUR 346 million.
The EUR 346 million deal includes the A.P. Moller–Maersk Group obtaining 28.8% of the shareholding in DFDS. In addition, the A.P. Moller–Maersk Group will buy shares in DFDS from Lauritzen Fonden, bringing the Group’s total shareholding in DFDS to approximately 31%. The deal excludes two of Norfolkline’s vessels, which the A.P. Moller–Maersk Group has agreed to sell to another buyer.
Leading Ferry Operator
There has been a need for consolidation in the European ferry industry and the combination of Norfolkline and DFDS will create Northern Europe’s leading ferry operator, spanning from Russia to Ireland, with 6,200 employees and a fleet of 75 vessels prior to the sale of the two
Norfolkline vessels.
The estimated 2009 pro forma financials of DFDS and Norfolkline show revenues of EUR 1,480 million and EBITDA of EUR 139 million.
The deal will enable DFDS to secure volumes through a much wider logistics network and strategic port access. The key focus areas for the new company during the initial integration phase will be to generate revenue growth through wider market coverage, to consolidate ro-ro shipping and port terminal operations on the North Sea and to improve capacity utilisation of the route network.
In the long term, the synergy potential will come from three main drivers: revenues and earnings growth, operating synergies and optimisation of vessel deployment.
The A.P. Moller–Maersk Group has under the shareholders’ agreement the right to nominate one member to the DFDS Board of Directors. The A.P. Moller–Maersk Group intends to nominate Søren Skou, partner and member of the Group’s Executive Board. As part of the shareholders’ agreement, the parties have also agreed to a lock-up period of 24 months.
