DP World PLC announces the acquisition of Fraser Surrey Docks from Macquarie Infrastructure Partners (MIP). MIP is a fund managed by the Macquarie Infrastructure and Real Assets (MIRA) division of Macquarie Group. The purchase consideration is below 2.5% of DP World’s net asset value as of FY20181.
The acquisition will be effected through DP World’s Canadian subsidiary, DP World Canada Investment Inc. which is owned 45% by Caisse de dépot et placement du Québec (CDPQ) and is subject to customary completion conditions. DP World expects the transaction to be earnings accretive from the first full year of consolidation and to close in the first half of 2019.
Fraser Surrey Docks is a large, multi-purpose marine terminal located in the greater Vancouver area of British Columbia, Canada. It operates over 1,200 meters of berth and 189 acres of yard and is one of Vancouver’s major steel import terminals. It also handles over 1 million tons of grain and serves several container lines, handling approximately 250,000 TEU in 2018.
The acquisition of Fraser Surrey Docks complements DP World’s footprint in Canada and provides an attractive platform to better serve our customers’ break-bulk and dry bulk requirements. DP World’s existing facilities at Vancouver and Prince Rupert have enjoyed strong growth in recent years and we believe that Fraser Surrey Docks will benefit from being part of DP World’s terminal portfolio.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are pleased to announce the acquisition of Fraser Surrey Docks, which complements our footprint in the west coast of Canada. We are seeing increasing demand from our customers for multi-purpose facilities in the region and we believe Fraser Surrey Docks has the relevant infrastructure and is in the right location to service this demand. We look forward to bringing DP World’s best-in-class terminal operations to Fraser Surrey Docks.”