DFDS EXPANDS FERRY NETWORK TO STRAIT OF GIBRALTAR

COMPANY ANNOUNCEMENT no. 31 - 17 September 2023

• Acquisition of FRS Iberia/Maroc, a ferry market leader Strait of Gibraltar
• Mediterranean route network expands to market expected to benefit from nearshoring of supply chains
• FRS Iberia/Maroc has 750 employees and expects revenue of DKK 1.0-1.2bn in 2023 with an expected EBITDA-margin of 18-20%
• Transaction enterprise value equals an EV/EBITDA multiple of 6x
• Accretive to ROIC and earnings per share
• Financial leverage stable with expected increase of 0.1x
• Investor/analyst conference call Monday 18 September 2023 9.30am CET, see registration details below
  
  

DFDS has today entered into an agreement to acquire FRS Iberia/Maroc, a division of the German short-sea ferry company FRS GmbH & Co. KG. FRS Iberia/Maroc operates three short-sea ferry routes across the Strait of Gibraltar connecting Spain and Morocco.

“We are excited to expand our network to one of Europe’s significant ferry markets that we expect will continue to show high growth underpinned by the ongoing nearshoring of supply chains to Europe”, says Torben Carlsen, CEO of DFDS.

“This is a great opportunity to scale DFDS’ business model. We will apply our capabilities and experience, not least from the Channel short-sea market, to further develop the Strait of Gibraltar ferry infrastructure while supporting regional tourism and trade”, says Mathieu Girardin, Head of DFDS’ Ferry Division and EVP.

“FRS Iberia/Maroc has achieved great success for more than two decades. We are pleased to have found a partner in DFDS who will run the company in a proven manner to ensure its continued growth and take good care of our employees”, says Götz Becker, CEO FRS Group.

Following the devastating earthquake in Morocco, the FRS Group has offered Moroccan authorities to assist with the transport of emergency supplies, medicine, and other emergency relief equipment. DFDS commends and fully supports these efforts while we through diplomatic representatives will explore possibilities for providing further assistance.

Strategic fit
The acquisition is aligned with DFDS’ strategy to develop and expand the transport network focused on moving goods in trailers by ferry, road & rail as well as moving passengers.

The acquisition expands DFDS’ Mediterranean route network that today connects Europe with Türkiye and Tunisia, respectively. The region’s organic market growth is expected to continue to exceed growth levels in northern Europe underpinned by nearshoring of manufacturing supply chains closer to end markets in Europe.