Actera, Esas exit UN Ro-Ro in €950m trade deal

Nicole Tovstiga
13 April 2018

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Istanbul-based buyout firm Actera Group and Esas Holding have sold Turkish freight shipping company UN Ro-Ro Isletmeleri to Danish shipping and logistics company DFDS Group.

Danish ferry company DFDS is acquiring a 98.8% stake in UN Ro-Ro for €950m on a debt-free basis, which will be mainly funded through committed debt financing.

The Turkish operator of freight shipping routes in the Mediterranean connects Turkey with Italy and France. With the acquisition, DFDS expands its route network to include the transport market between Turkey and the EU.

DFDS was reported to have withdrawn from the auction process in 2014, when Actera and Esas acquired the Turkish freight company.

The transaction is subject to approval by the Turkish, Austrian and German competition authorities, as well as Italian authorities in relation to the transfer of the Trieste terminal as a strategic asset. Closing of the transaction is expected to take place in June 2018.

DFDS also announced the termination of ongoing buy-back options and the suspension of a 2018 dividend.

Previous funding
KKR acquired a 97.6% stake in the Turkish transport business and majority shareholdings in each of its three affiliates in October 2007. The deal valued the group at €910m, representing the largest private equity buyout in Turkey at the time. The transaction was carried out via newco Trieste Bidco Denizcilik ve Tasimacilik.

KKR sold UN Ro-Ro to local private equity firms Actera and Esas in 2014. The duo were reported to have paid around €700m for the company.

Company
Established in 1994 and headquartered in Istanbul, UN Ro-Ro operates five freight shipping routes in the Mediterranean between Turkey and the EU. Four routes connect to Italy and one to France. The routes carried 202,000 freight units in 2017, which corresponds to a 34% share of the total market including land transport, according to the company.

By the end of 2017, UN Ro-Ro deployed 12 freight ferries, which were built by the Flensburg shipyard. In addition, it also operates two port terminals.

The company expects revenues of €240m and EBITDA of €97m for 2018. It employs a staff of 500.

People
UN Ro-Ro – Selçuk Boztepe (CEO).
DFDS Group – Niels Smedegaard (CEO).

Advisers
Company – Kirkland & Ellis, David Arnold, Amelia Doughty (legal).