Dutch companies Royal Boskalis Westminster and Kotug International, 50/50 shareholders of Kotug Smit Towage, have signed a letter of intent (LOI) to sell their joint venture to Spanish Boluda Group.
Under the terms of the LOI, the total enterprise value of Kotug Smit Towage is valued at EUR 300 million (USD 340.2 million).
The final agreement is subject to satisfactory due diligence and regulatory approvals from the respective national authorities involved. The transaction is expected to close in the second half of 2019, according to the duo.
The Kotug Smit Towage joint venture was formed in 2016 and covered at the time 11 ports in the Netherlands, Belgium, Germany and the United Kingdom. Since then the JV has expanded its presence into new ports.
As shipping alliances are expected to continue to impact the European harbor towage industry, further consolidation of business will enable Kotug Smit Towage to adequately respond to this development, Kotug said, adding that Boluda is “best positioned to add value to the existing European towage business.”
Founded in Valencia in 1920, Boluda operates in the Spanish and French markets with a fleet of over 230 vessels. It is present in the main ports of Europe, Africa, the Indian Ocean and Latin America.
Boskalis is a global services provider operating in the dredging, maritime infrastructure and maritime services sectors.
Kotug is specialized in terminal and harbour towage, offshore and salvage operations, as well as chartering.
“Kotug will continue to expand its maritime and towage related activities worldwide. I am confident that this development will unlock new opportunities to further strengthen our growth,” Ard-Jan Kooren, Kotug CEO, commented.