DP World acquires Drydocks World, DMC for $405 million

Dubai / WAM

DP World Limited announced on Monday that it has entered into agreements to acquire Maritime World LLC, the 100% owner of Dubai Maritime City (DMC), for a purchase consideration of $180 million and to buy 100% of Drydocks World LLC (Drydocks) by means of a capital injection of $225 million, taking the total cash required for the acquisitions of DMC and Drydocks to $405 million.
DMC is a world class maritime service facility and industrial business zone in a prime location of central Dubai and adjacent to DP World’s Mina Rashid. It is a maritime focused commercial and industrial park, which extends to 2.3 million sq metre on a man-made peninsula and provides Economic Zones World FZE additional land as
an alternative to the highly
occupied Jebel Ali Free Zone.
Drydocks World is a market leader in the ship repair business with the largest ship repair yard in the Middle East. The business delivers stable ship and rig repair revenues and has specialist capabilities in niche ship newbuilds and conversions. Drydocks’ acquisition will integrate well into P&O Maritime (POM), which is DP World’s 100 percent owned maritime services subsidiary. On a proforma basis, the US$ 225 million capital injection into Drydocks World represents a 2016A EBITDA multiple of 8.0x.
The acquisitions are expected to be earnings accretive from the first full year of consolidation. On a proforma basis, DP World’s net leverage as of H1 would be 2.9x Net Debt to EBITDA with these acquisitions compared to the reported 2.6x.
Both acquisitions are subject to certain conditions precedent and the acquisition of Drydocks World is subject to the successful completion of its debt
restructuring process. Both transactions are expected to close before the end of the first quarter of 2018.