Peel Ports has sealed a £50m deal to expand its portfolio of docks.
Mark Whitworth, chief executive of Peel Ports, said the acquisition would "complement our business by providing geographical and commercial diversification".
The company has agreed to purchase Great Yarmouth Port Company, operator of the Great Yarmouth docks, from an offshoot of Global Infrastructure Partners (GIP) for a reported £50m. The newly acquired business, which has a particular market specialism in decommissioning, currently employs approximately 65 staff in Great Yarmouth.
Great Yarmouth Port Company services the UK sector of the southern North Sea offshore oil and gas industry, but also has interests in grain, aggregate and other bulk and general cargoes. In its last annual accounts, it reported revenues of £10.9m and operating profits of £4.5m.
In 2007, GIP reached an agreement with the Great Yarmouth Port Authority to buy a 99-year leasehold interest in the existing river port assets of Great Yarmouth for nominal consideration and a commitment to invest in an outer harbour sea port expansion.
GIP subsequently oversaw the development of a new, deepwater outer harbour that complements the facility's existing river port in Norfolk. The expansion enhanced the port's capacity and enabled the servicing of larger ships and a greater range of trades and commodities.
Whitworth said: "Great Yarmouth is a welcome addition to our portfolio and will complement our business by providing geographical and commercial diversification.
"Bringing together customers and commodities served by both businesses will present a sound base for exploring future growth opportunities. This includes decommissioning, where Great Yarmouth's market position has the potential to further enhance Peel Ports existing strategic assets."
Peel Ports also operates ports in Merseyside, Greater Manchester, Lancashire, Kent, Glasgow, Belfast and Dublin.
Pinsent Masons advised Peel Ports on the acquisition. Corporate partner Helen Ridge led the Pinsent Masons team supported by Anna Whetham, Anna Mee and Matt Rowlands.
Ridge said: "We are delighted to have advised Peel Ports on this significant addition to their portfolio on a deal which completed in a challenging timeframe and look forward to our ongoing relationship with all of the Peel Ports team."
source: InsiderMedia