UniFeder, a wholly-owned subsidiary of Dubai Ports World, has acquired a 77% stake in Federica Group. The deal, which is expected to be completed in the first quarter of 2020, is the latest step in DP World's vision to build comprehensive logistics capabilities to meet the needs of shipping lines and cargo owners.
The acquisition of Federtech extends the company's offerings of medium-sized ship services for container shipping and short-term coastal shipping to multiple geographies.
Founded in 2003 and headquartered in Singapore, Federica Group operates two companies: Federica, an independent medium-sized container shipping company, and Perma, a regional network for short-term coastal shipping.
The two companies operate in the same market and contribute to linking the fastest growing trade route between Asia and the Middle East across the Indian subcontinent. The Vedtec ships dock at 50 ports, generating revenues of about $ 200 million annually from a variety of customers, and annually transport more than 600,000 TEUs.
UniFeder, acquired by DP World in 2018, is an integrated logistics company, and has the largest network of medium-sized container ships, short-term coastal shipping and the best interconnected in northern Europe, linking around 100 ports. .
Through Federtek and Perma, UniFeder will be able to provide medium-sized vessel services for container shipping, short-term regional coastal shipping in northern Europe, the Mediterranean and North Africa, and currently in Asia and the Indian subcontinent.
DP World's strategic objective was to create added value by using the management expertise of UniFeder to replicate the light-asset model elsewhere. The deal is the first stage in the ongoing process of creating value.
Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World, said: “The acquisition of a stake in Federal Tech is another strategic step in our vision of building comprehensive logistics capabilities and delivering a full service package that also engages end customers. And traders, besides improving operations. Federal Group has a reputation as a reliable and independent medium-sized container shipping company and a regional short-term regional maritime operator, and we are delighted to add this important advantage to our growing portfolio. ”
“In addition, this acquisition allows us to open up to short-term and fast-growing coastal trade in the Indian subcontinent, complementing our current logistics strategy for India. The next and forthcoming phase of the development is the launch of a dedicated and efficient service for the India-Gulf region, which is an important milestone for our customers. ”
Ali Magami, the founding president of Federica, said: “Federica has had great success over the years, and our deal with UniFeder, backed by DP World, will allow us to move our company to another stage of Growth, Federtec and UniFeder are based on similar business models, share a desire to reduce shortcomings, and are confident that, by combining the expertise of the two companies, we will be able to provide quality products to our customers. In addition, joining the DP family Global will allow us to benefit from the Group's extensive relationships with end users, as well as its network World wide, and we look forward to achieving a bright and prosperous future together ».