DFDS and A.P. Moller - Maersk have entered into an agreement under which DFDS acquires Norfolkline for a consideration of €346m. The acquisition creates a leading Northern European sea-based transport network.
"This is a perfect match" says DFDS’ CEO Niels Smedegaard. "Norfolkline is a leading ferry and logistics company with a strong route network covering the North Sea, the English Channel and the Irish Sea, combined with a considerable logistics operation. This means, that DFDS' network in the Baltic Sea and the North Sea is expanded to include two new markets, the Channel and The Irish Sea. We both serve passengers and freight customers and can now provide transport solutions spanning the whole of Northern Europe – from Russia to Ireland."
Regarding the driving force behind the acquisition, Smedegaard said "Through this acquisition we gain greater scale and come closer to our vision of building a European sea based transport network. The integration of our companies will generate considerable synergies and we expect this transaction to improve our ability to offer our customers more and improved services as well as improve our earnings level once a market recovery sets in. I am really looking forward to working with our future colleagues from Norfolkline to develop our services further towards our customers."
The debt-free purchase price of €346m consists of a cash payment of €170m and shares in DFDS equalling 28.8% of the share capital. Including an additional purchase of shares, A. P. Moller - Maersk’s ownership will equal approximately 31%.
The transaction is subject to a number of conditions, including satisfactory approvals by relevant competition authorities.
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