U.K. private equity investor 3i has taken control of Scandlines, after buying out the co-owner of the ferry operator, and has refinanced its debt facilities.
3i said it paid Germany’s Allianz Capital Partners €165 million (about US$223 million) for its 49 percent stake in the leading Baltic Sea roll-on, roll-off shipping company and expects to close on the deal by the end of the year. As part of the acquisition, 3i refinanced Scandlines’ current debt facilities into a new €875 million package.
“This has been well received in the debt capital markets and provides a firm foundation for Scandlines’ future strategic objectives,” the London-based group said.
TPG, the U.S. private equity group that was the sole bidder after DFDS, the Danish logistics company, dropped out, refused to raise its €1.3 billion offer.
3i and Allianz each acquired 40 percent of Scandlines in 2007 in a €1.5 billion acquisition funded by €1.3 billion of debt at the height of the buyout boom. They bought out the 20 percent stake of Deutsche Seereederei, a German shipping company, in 2010.
Scandlines, which operates nine vessels and has two on order, sold its freight business, which transports about 800,000 trucks a year on routes between Denmark, Germany and Sweden, in 2012. The company posted a record operating profit of €193 million in 2012 on revenues of €608 million.