ICG sells Feederlink

9/1/2012

Irish Continental Group (ICG) has announced it is to sell its container shipping subsidiary, Feederlink, to Danish asset-light logistics operator Unifeeder for almost €30 million.

Feederlink, launched in 1993, provides container shipping services on routes between the port of Rotterdam and the east coast UK, utilising a fleet of time-chartered vessels. In 2011 Feederlink carried 138,500teu.

ICG, which also owns Irish Ferries and Eucon, will receive its price for Feederlink in cash: €20 million on closing and up to €9 million in three tranches, deferred up to 12 months after closing, conditional on certain conditions being met during the 12 months.

The company said the proceeds would be used for general corporate purposes.

Feederlink is being acquired on a debt-free/cash-free basis. Its gross assets, as at 30 June 2012 (excluding cash), were €3.3 million. In the year to 31 December 2011, Feederlink recorded revenue of €21.6 million and profit before tax of €1.8 million.

The transaction is subject to regulatory approval and to no material adverse change affecting the business prior to closing.

The current management team of Feederlink, led by Rob Mulder and Ingrid Van Mil, will continue in managerial roles in the combined entity.