DP World PLC has acquired the holding company of pan-European logistics business P&O Ferries, the company announced on Wednesday.
According to DP World, the acquisition is worth a purchase consideration of $421 million.
P&O Ferries consists of a market leading roll-on, roll-off ferries operation and a European transportation and logistics solution provider, P&O Ferrymasters.
The UK-based ferry company operates a fleet of 21 vessels on the Short Sea, North Sea and Irish Sea sectors across 11 ports, and handles over 2.5 million freight units per year which account for 75 percent of the group’s revenues.
P&O Ferrymasters, for its part, provides supply chain solutions in 19 European locations.
In the 2017 fiscal year, the group reported earnings of $1.4 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of $131 million.
The transactions is expected to close in the first half of 2019.
“We are pleased to announce the return of P&O Ferries back into the DP World family,” said DP World group chairman and CEO Sultan Ahmed bin Sulayem.
“P&O Ferries is a strong, recognisable brand and adds a best-in-class integrated logistics provider into our global portfolio.”
Bin Sulayam added, “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.”