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Vopak reaches agreement with First State Investments on sale of terminals

Published by , Editorial Assistant
Tanks and Terminals,

Royal Vopak has announced that it has reached agreement on the sale of its terminals in Algeciras, Amsterdam and Hamburg. This divestment follows the strategic review of these terminals as announced on 17 August 2018. The transaction is subject to certain customary closing conditions and is expected to complete in the second half of 2019. The combined operational capacity of the three terminals is 2.288 million m3.

The total agreed transaction value of the terminals is €723 million, including a contingent consideration of €15 million, which is subject to certain revenue conditions. The transaction is expected to generate a net pre-tax cash inflow for Vopak of approximately €670 million at completion in 2019. The total expected exceptional gain before taxation will be around €200 million, to be recorded in the second half of 2019.

This transaction is accretive to the return on capital employed for Vopak and has an implied multiple of more than 10x EBITDA. At the completion of this transaction, the use of the proceeds will be considered in line with the strategy and financial framework as presented at the Vopak Capital Markets Day 27 November 2018.

"Today's announcement is a next step in the delivery of our strategy and the alignment of our portfolio based on long term market developments”, said Eelco Hoekstra, CEO Vopak. “In Europe, our main focus is to further strengthen our position in the major industrial clusters Rotterdam and Antwerp. Globally, we currently have more than 2 million m3 under construction and new projects will be announced to grow our portfolio with a focus on industrial, chemical, and gas terminals and to maintain our strategic position in hub locations."

Marcus Ayre, Partner First State Investments commented: "We are delighted to have reached an agreement with Vopak on the acquisition of the terminals in Algeciras, Amsterdam and Hamburg. This diversified portfolio of world-class oil product storage terminals provides an excellent fit with First State's long term infrastructure investment philosophy. We look forward to working with the incumbent highly skilled management team and employees to continue to develop and grow the business."

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