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DP World acquires P&O Ferries
P&O Ferries operates 21 vessels on the Short Sea, North Sea and Irish Sea

DP World acquires P&O Ferries

DP World has acquired the holding company of P&O Ferries and P&O Ferrymasters for GBP322m (USD421m), as its steps up its investments in shipping following the purchase of Unifeeder last year.

After selling the company a decade ago, the Dubai-based company is buying it back at an EBITDA valuation multiple of 6.1x.

Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, said: “P&O Ferries is a strong, recognisable brand and adds a best-in-class integrated logistics provider into our global portfolio.

“Importantly, P&O Ferries provides efficient European freight connectivity building on last year’s acquisition of Unifeeder. This transaction is in line with our strategy to grow in complementary sectors, strengthen our product offering and play a wider role in the global supply chain as a trade enabler.”

P&O Ferries is a pan-European integrated logistics business consisting of a market leading roll-on roll-off (ro-ro) ferries operation and a European transportation and logistics solutions provider, P&O Ferrymasters.

The ferry company operates a fleet of 21 vessels on the Short Sea, North Sea and Irish Sea sectors across 11 ports whilst P&O Ferrymasters provides supply chain solutions in 19 European locations.

P&O Ferries handles over 2.5m freight units per year which accounts for approximately 75% of group revenues.

It reported FY2017 revenues of GBP1.1bn (USD1.4bn) and EBITDA of GBP100m (USD131m).

The transaction is subject to customary completion conditions and is expected to close in the first half of 2019.