DP World acquires container feeder and shortsea network operator Unifeeder
Secured as part of a landmark US $763m (€660m) deal, DP World announced the acquisition of the Unifeeder Group, a Denmark-based container feeder and shortsea network operator active in Europe.
The deal was secured through Nordic Capital Fund VIII, as well as support from key minority shareholders. Jefferies Financial Group acted as joint financial adviser to Unifeeder on the sale.
Founded back in 1977, the Group serves both deep-sea container hubs and the intra-Europe container freight market, and maintains a shortsea network in Northern Europe with connections to roughly 100 ports. Unifeeder comes off a strong 2017 performance, which it reported revenues of $590m (€510 million).
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “The ever-growing deployment of ultra-large container vessels has made high-quality connectivity from hub terminals crucial for our customers and Unifeeder is a best-in-class logistics provider in this space with a strong reputation in Europe.
“Our aim is to leverage on the in-house expertise of Unifeeder and to accelerate growth in this scalable platform to deliver value for all stakeholders. Unifeeder operates on the same common-user principle as DP World and adds to the Group’s strong value proposition to international shipping lines and end cargo owners in making the global supply chain more efficient and cost-effective,” he added.
As an integrated logistics company, Unifeeder’s portfolio comprises of a range of sustainable transport services aimed at global container shipping lines between international and regional ports, along with shortsea services for cargo owners. In the case of the latter, this includes services, such as multimodal door-to-door solution and combined seaborne transportation with road as well as rail.
Commenting on the acquisition, Jesper Kristensen, CEO, Unifeeder A/S, shared: “We are excited to join the DP World Group as we believe that Unifeeder will benefit from the Group’s significant expertise in the wider supply chain and excellent relationships with shipping lines and end cargo owners.
“Not only is there commonality with our business models but we also share the vision of serving our customers through removing inefficiencies and delivering sustainable shareholder value. We have enjoyed great success over the last five years under Nordic Capital’s ownership, and we believe that the Unifeeder brand within the DP World Group has the opportunity to accelerate growth, expand further and take the business to the next level.”