UN Ro-Ro sold to DFDS
The Turkish line was taken over by the Danish group for 950 million euro
DFDS has acquired for 950 million euro 98% shares of U.N. Ro-Ro, the leading Turkish operator of freight shipping routes in the Mediterranean, connecting Turkey with Italy and France, highly profitable and the leading operator with a market share twice that of the next competitor in Turkey
"With this acquisition we are expanding into one of Europe's most attractive freight markets which is operationally similar to northern Europe. This gives us opportunity together with the existing strong management team to leverage our network, fleet, experience and skills to develop the business further while supporting the growth of U.N. Ro-Ro's customers” says Niels Smedegaard, CEO of DFDS.
"We are excited to become part of DFDS' network and the development opportunities this brings to both our customers and employees. I am confident that the industry know-how, combined network capabilities, and the financial strength of our new shareholder will allow U.N. Ro-Ro to enhance the competitiveness of Turkish exporters and international logistics companies" says Selçuk Boztepe, CEO of U.N. Ro-Ro.
DFDS will acquire U.N. Ro-Ro for EUR 950m on a debt free basis, which will be mainly funded through committed debt financing. The acquisition is expected to be earnings accretive already in 2018. U.N. Ro-Ro's ROIC post acquisition exceeds DFDS' cost of capital.
The transaction is subject to approval by the Turkish, Austrian and German competition authorities as well as Italian authorities in relation to the transfer of the Trieste terminal as a strategic asset. Closing of the transaction is expected to take place in June 2018.
With 500 employees, U.N. Ro-Ro operates 5 freight shipping routes in the Mediterranean between Turkey and EU: 4 routes connect to Italy and 1 to France. The routes carried 202,000 freight units in 2017 corresponding to a 34% share of the total market including land transport. By the end of 2017, U.N. Ro-Ro deployed 12 freight ferries with an average age of 11 years. All freight ships are built by the Flensburg shipyard, where also some of DFDS' most modern and efficient Ro-Ro ships are built.
In addition, U.N. Ro-Ro operates 2 port terminals and also provides intermodal solutions.
For 2018, revenue of EUR 240m and EBITDA of EUR 97m are expected. Strategic rationale
DFDS believes that the acquisition of U.N. Ro-Ro provides significant value to its customers, employees and shareholders.
The acquisition expands DFDS' route network to include the fast growing transport market between Turkey and EU. U.N. Ro-Ro's business model of carrying un-accompanied freight units, mainly trailers, on ro-ro ships between Turkey and EU is identical to DFDS' North Sea business model which will allow us to leverage our strong track record in this market.
Further, the integration of U.N. Ro-Ro into DFDS' business model and systems is expected to offer a number of synergies and development opportunities:
The Group's revenue in 2018 is expected to increase around 8%. The outlook range for EBITDA before special items is DKK 3,000m-3,200m; investments are expected to amount to DKK 5bn (1.1bn euro).