DP World to acquire Dubai Maritime City and Drydocks World for $405 million
September 19, 2017: Dubai-based DP World has entered into agreements to acquire two major maritime companies for $405 million.
The port operator will acquire Maritime World LLC, the 100 percent owner of Dubai Maritime City (DMC), for a purchase consideration of $180 million and will buy 100 percent of Drydocks World LLC (Drydocks) by means of a capital injection of $225 million.
The acquisitions are expected to be earnings accretive from the first full year of consolidation.
“Both acquisitions are subject to certain conditions precedent and the acquisition of Drydocks World is subject to the successful completion of its debt restructuring process,” informed the company through a statement.
Both transactions are expected to close before the end of the first quarter of 2018.
Sultan Ahmed Bin Sulayem, group Chairman and CEO, DP World, said, “Dubai Maritime City provides us with stable leasing income from DMC’s existing industrial zone and spare capacity to develop industrial and commercial activities for the maritime sector in a prime location of Dubai.”
“Drydocks World bolsters our investment in the maritime sector through our subsidiary P&O Maritime. We are acquiring a market leader in the Middle East with the potential to deliver near term synergies and new revenue opportunities over the longer term, particularly in ship conversion and in areas where POM has existing expertise. We remain excited about the growth prospects of this business.
DMC is a world class maritime service facility and industrial business zone in a prime location of central Dubai and adjacent to DP World’s Port Rashid. It is a maritime focused commercial and industrial park, which extends to 2.3 million sqm on a man-made peninsula and provides Economic Zones World FZE additional land as an alternative to the highly-occupied Jebel Ali Free Zone.
Drydocks World is a market leader in the ship repair business with the largest ship repair yard in the Middle East. The business delivers stable ship and rig repair revenues and has specialist capabilities in niche ship newbuilds and conversions. Drydocks’ acquisition will integrate well into P&O Maritime (POM), which is DP World’s 100 percent owned maritime services subsidiary.