DFDS creates leading provider of cold chain logistics - Seite 2

The company operates from 22 locations across Europe, including key distribution and storage centres in the Netherlands, Germany, and Denmark. In addition, the company also has offices in China and Morocco.

The main flows handled are from the Netherlands to the UK and Germany, and from Denmark to the UK and southern Europe. Front loads are mainly meat and seafood while backloads include fruit, vegetables, frozen fries, and dairy products as well as meat.

The business model includes rental, repair, and cleaning of reusable packaging (plastic box pallets, crates, and pallets). Transports are both accompanied and unaccompanied and the company uses both in-house and outsourced trucks and drivers.

The HSF Logistics Group has revenue of DKK 2.8bn and an EBITDA of DKK 320m (before adjusting for IFRS 16). The company currently has 1,800 employees and operates around 700 trucks and 1,700 reefer trailers, including both owned and leased units.     
  
Strategic fit and synergy
The acquisition is aligned with DFDS’ Win23 strategy of growing solutions to three industries, namely automotive, forest & metal and cold chain. The growth strategy for cold chain builds on DFDS’ existing cold chain offering in mainly the UK and Belgium.

Adding the HSF Logistics Group to the existing activities expands the geographical scope to the Netherlands, Scandinavia, Germany and southern Europe, as well as China and Morocco. In addition, it adds expertise in meat logistics to DFDS’  expertise in aquaculture/ seafood and general food logistics.

The integration of the HSF Logistics Group is expected to generate both commercial and cost synergies as well as synergies from addition of volumes to DFDS’ transport infrastructure of ferry routes and ports. Expected synergies will be described in further detail in connection with the closing of the transaction.  

Transaction structure and financing
DFDS acquires the HSF Logistics Group for a debt-free price of DKK 2.2bn (EUR 296m).

The acquisition will be made by a newly established company of which DFDS owns 100% of the ordinary shares. Non-voting preference shares will be issued and owned by the sellers. DFDS has a call option to redeem the preference shares over a planned three-year period.    

DKK 930m will be paid on closing. Over the following three years, DKK 270m is planned to be paid each year to redeem the preference shares. Estimated DKK 460m of net interest-bearing debt (excluding IFRS 16 lease obligations) will be taken over as part of the transaction.