Royal Vopak to divest Algeciras, Amsterdam and Hamburg terminals
Royal Vopak is a leading independent tank storage company operating a global network of terminals handling various oil, chemicals, edible oils and natural gas-related products. On 5 April, following a strategic review of holdings that commenced on 17 August 2018, the Dutch company announced the sale of its terminals in Algeciras, Amsterdam and Hamburg.
The company reached an agreement with First State Investments for the three terminals that have a combined operational capacity of 2,288,000 cbm. The transaction is valued at EUR 723 million (USD811.3 million), which Royal Vopak expects to be completed in the back half of 2019. The agreement includes certain revenue conditions, with contingent consideration of EUR 15 million (USD16.8 million).
The divestment supports a long-term strategic alignment of the company’s portfolio based on market developments. The “main focus is to further strengthen our position in the major industrial clusters Rotterdam and Antwerp,” says CEO Eelco Hoekstra. Royal Vopak indicated it will soon announce new projects to maintain its strategic position in various hub locations, as well as expand their portfolio of industrial, chemical, and gas terminals. Royal Vopak currently has more than 2 million cbm under construction, says Hoekstra.
First State Investments is the international investment unit of Colonial First State Global Asset Management. Marcus Ayre, partner, First State Investments confirmed that the acquisition of the portfolio of world-class oil product storage terminals provides an “excellent fit with First State’s long term infrastructure investment philosophy”.