Royal Boskalis Westminster NV and Kotug International BV have signed a letter of intent (LOI) relating to the sale of Kotug Smit Towage to Boluda Group (Boluda).
Under the terms of the LOI, the total enterprise value of Kotug Smit Towage is valued at EUR 300 million. Boskalis expects to receive approximately EUR 90 million in cash for its fifty per cent equity stake in the joint venture.
Kotug Smit Towage Joint Venture
The Kotug Smit Towage joint venture between Boskalis and Kotug was formed in 2016 which at the time covered eleven ports in four countries (the Netherlands, Belgium, Germany and the United Kingdom). Since then, the joint venture has successfully expanded its presence into new ports and realised efficiency savings. Boskalis and Kotug feel a further consolidation of the European harbor towage market would be beneficial, a vision which is shared by Boluda.
Boluda
The origins of Boluda go back to 1837 and their tug boat business was founded in 1920 in Valencia, Spain. Today, the family-owned company is the leading operator in the Spanish and French market and with a fleet of over 230 vessels the company holds an important international position in the main ports of Europe, Africa, the Indian Ocean and Latin America. The combination of Kotug Smit Towage and Boluda is said to be highly complementary making this intended transaction attractive for all stakeholders.
New Opportunities through Alliances
Kotug expects shipping alliances to continue to impact the European harbour towage industry. The company believes that further consolidation of businesses will enable Kotug Smit Towage to adequately respond to this development.
Kotug CEO Ard-Jan Kooren: 'Kotug will continue to expand its maritime and towage related activities worldwide. I am confident that this development will unlock new opportunities to further strengthen our growth and allow us to offer operational excellence and innovation to our customers.'
Due Diligence and Approval
This agreement is subject to customary conditions including a due diligence and approval from regulatory agencies in the respective countries involved. The transaction is expected to close in the second half of 2019.
Leaving the Towage Business
Boskalis seems to be withdrawing from the towage business. Early in February, Boskalis announced to sell its share in Saam Smit Towage to SAAM S.A., ending the company's in evolvement in the towage business in South America and Canada.
Picture: Kotug Smit Towage vessels in the Scheurhaven Europoort, Rotterdam (by Kees Torn).
