Swiss-headquartered resources company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that it has agreed to acquire 100 percent of the share capital of the waterway transportation company Helogistics Holdings and its existing bank debt for €28.5 million cash.
The purchase, subject to regulatory approval, is expected to be completed around the end of the calendar year.
Helogistics transports iron ore pellets as well as other bulk cargos along the Danube and Rhine rivers from the ports of Ismail, Ukraine, and Rotterdam, the Netherlands, to various locations in northern, central and eastern Europe.
"This acquisition adds to Ferrexpo's extensive logistics network in northern, central and eastern Europe solidifying our presence as the regional market leader in iron ore pellet supply. It is part of our strategy to further control the supply chain securing existing customer relationships and providing access to new European markets throughout the Rhine/Danube River corridor in Europe," Ferrexpo's chairman Michael Abrahams commented.
In 2009 and in 2010 up to November 30, Helogistics respectively transported around 504,000 mt and 575,000 mt of Ferrexpo's pellets to its core customers in central Europe. For the year ended December 31, 2009, Helogistics reported EBITDA of €0.7 million.