DP World acquires Danish logistics company

Dubai’s DP World is expanding its footprint in Europe by acquiring Danish logistics company Unifeeder for $765 million. The port operator bought the firm from Nordic Capital Fund VIII and certain minority shareholders.

The acquisition is intended to boost DP World’s presence in the global supply chain and broaden its product offering to shipping firms and cargo operators, the company said in a stock exchange statement.

Based in Denmark, Unifeeder operates a container feeder and shortsea shipping network in Europe, with connectivity to approximately 100 ports—serving both deep-sea container hubs and the intra-Europe container freight market. The company, which was founded in 1977, reported revenues of $591 million last year.

“The ever-growing deployment of ultra-large container vessels has made high-quality connectivity from hub terminals crucial for our customers,” said Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World.

The deal to acquire Unifeeder, which will be financed from DP World’s existing balance sheet, is still subject to regulatory approvals and is expected to close in the final quarter of 2018.

Globally, DP World operates 78 marine and inland terminals, with activities include container handling, cargo, and fleet and logistics services. Recently, the firm has made a push to expand its reach in Africa. In July, DP World announced plans to build inland logistics hubs in both Mali and Ethiopia, which will connect to coastal ports operated by the company in neighboring Senegal and Somaliland, respectively. DP World is also currently locked in a dispute with the government of Djibouti over the seizure of a container terminal operated by the firm.