NORTHERN EUROPE. Ferry group DFDS is to acquire Norfolkline from AP Moller-Maersk for €346 million in a cash and share deal. AP Moller-Maersk will become a major shareholder in DFDS, taking a 31% stake through the deal.
The acquisition creates Northern Europe’s leading sea-based transport network by combining two leading shipping companies, said DFDS. Combined pro forma revenues will be €1.5 billion in 2009 and will have a combined workforce of 6,200 employees.
“This is a perfect match,” said 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.”
Network strategy
The driving force behind the acquisition was DFDS’ network strategy, said Smedegaard.
“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 €346 million consists of a cash payment of €170 million and shares in DFDS equalling 28.8 % of the share capital. Including an additional purchase of shares, AP Moller – Maersk’s ownership will equal around 31%.
“We are looking forward to becoming a major shareholder in DFDS and are convinced that the new company will create value for its owners,” said Søren Skou, Partner and member of the Executive Board of AP Moller – Maersk.
The transaction is subject to a number of conditions, including satisfactory approvals by relevant competition authorities.
Gebr Heinemann has an exclusive supply agreement, signed in 2007, with DFDS Group’s passenger ferry division DFDS Seaways for its core categories.
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