Dockwise Ltd has signed a letter of intent to sell its wholly-owned subsidiary Dockwise Yacht Transport (DYT) to Coby Enterprises Corp, supported by private equity and with participation of the existing management of DYT. Closing of the transaction is conditional upon market customary conditions.
The proceeds of this cash deal will be disclosed upon completion of the transaction which is expected to take place during the next quarter. Following the disposal of DYT, Dockwise will be focused solely on its core Heavy Marine Transport (HMT), Transport and Installation (T&I) and Logistical Management activities.
DYT
DYT specialises in the transport of yachts and leisure craft between premier sailing regions around the globe. Its main market among others is the annual transatlantic migration, in the second and fourth quarters of the year, of luxury yachts from Florida and the Caribbean to the Mediterranean and back. The company owns three dedicated vessels; Super Servant 3, Super Servant 4 and Yacht Express and offers both premium float-on/float-off and lift-on/lift-off yacht transportation services.
Lack of Synergy
DYT has long been operated independently from Dockwise and there was no significant overlap in customers or synergy with the remaining Dockwise fleet. DYT revenue and EBITDA further amounted to a small fraction of the overall Dockwise. The buyers wish to maintain an independent company with a single focus on the business of transporting leisure craft around the world.
Given the three-vessel structure of DYT, and plans both for the deployment and maintenance of the ships in the immediate future, a phased closure process is planned for the first quarter of 2012.
