To further develop DFDS’ logistics services, DFDS has today acquired 100% of the share capital of Haulage Shetland Ltd. headquartered in Lerwick on Shetland, Scotland. The company trades under the name of Shetland Transport.
“The acquisition of Shetland Transport enhances DFDS’ service offering to our many customers, including an even more robust logistics platform in Scotland for the aquaculture industry,” says Eddie Green, Executive Vice President, Head of Logistics Division.
Since 1982, Shetland Transport has provided transport services to and from the islands of Shetland and Orkney to the UK mainland via Aberdeen. The primary activity is the transport of fresh fish under temperature-controlled conditions. Its revenue was GBP 10m (DKK 84m) in 2015/2016 and the company has 55 employees. The company operates a warehouse and a workshop in Lerwick, distribution centres in Aberdeen and Coatbridge as well as a fleet of 128 trailers and 28 tractor units. Distribution services are carried out by own drivers.
The acquisition of Shetland Transport adds further temperature-controlled warehousing and distribution capabilities to DFDS’ similar existing activities in Scotland. The acquisition is expected to support DFDS’ goal of a 10% return on invested capital from the outset.
The transaction includes potential earn-out payments to the seller in 2017 and 2018. Accounting wise, the transaction will take effect from today. It will not have any material impact on DFDS’ outlook for 2016.