DP World has closed the acquisition of feeder operator Unifeeder for €660m (US$750m), aiming to enhance its services in the European market and marking a big step outside of its core container terminal business.
Unifeeder, which operates a growing shortsea network in Europe as it serves both deep-sea container hubs and the intra-Europe freight market, is connected to approximately 100 ports.
Through this transaction, the Dubai-based company sees Unifeeder’s “unique platform for independent logistics solutions” as a means to complement its business through reducing inefficiencies.
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, said: “With Unifeeder, we are acquiring a leading port related logistics solutions provider in Europe as part of our strategy to grow in complementary sectors.
“This transaction is very relevant to our business and provides future growth opportunities, especially that feedering and shortsea/regional transports with smaller vessels have become more important for shipping lines with the use of larger vessels by shipping alliances.”
Sulayem explained that the operator’s core business will continue to be the container terminal but the acquisition fit with its strategy to diversify revenues and play a wider role in the supply chain.
CEO of Unifeeder A/S, Jesper Kristensen, said: “We are excited to be a part of the DP World Group and we look forward to leveraging their expertise to accelerate growth and take the business to the next level.
“Today we are starting a new chapter in Unifeeder’s growth story and we are confident that, with our shared vision for an efficient supply chain and a value added customer offering, we lay a strong foundation for further success and growth.”
Unifeeder was founded in 1977 and provides cargo owners with fully multimodal door-to-door solutions, combining seaborne transportation with road and/or rail.
It had a reported revenue of €510m (US$580m) in 2017 and EBIT margins in line with other asset-light logistics operators.