Global trade enabler DP World on Thursday said it has acquired marine logistics provider Feedertech Group. The transaction is expected to close in the first quarter of 2020.
"Unifeeder, a 100 per cent owned subsidiary of DP World PLC, announces the acquisition of a 77 per cent stake in Feedertech Group," the company said in a statement.
Feedertech founder Ali Maghami will retain the remaining 23 per cent shareholding and remain involved in the business.
The statement said that established in 2003 and based in Singapore, Feedertech operates two businesses, Feedertech, which is an independent feedering service, and Perma, a regional short-sea network. Both operate in the same market and connect the fast-growing trade route of Asia-Middle-East via the Indian Subcontinent.
"Similar to Unifeeder, Feedertech operates as an asset-light, independent common-user platform that focuses on flexibility and reliability. The group generates annual revenues of over USD 100 million from a diversified customer mix, calls at 50 ports and transports over 600,000 TEU (twenty-foot equivalent unit) annually," the statement said.
DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said, This transaction is another strategic step in our vision to build end-to-end logistics capability...it offers us exposure to the faster-growing coastal short-sea trade in the Indian subcontinent, which is highly complementary to our existing India logistics strategy."
He said the next and imminent stage of this development will be to launch a dedicated efficient India-Gulf region service.
Maghami said, "...being part of the DP World family will allow us to benefit from the Group's deep relationship with end-customers and wide global network.