Svitzer Divesting Portuguese Business Amid Declining Volumes
Towage provider Svitzer is selling its Portuguese marine operations to Pioneiro do Rio, Serviços Maritimos, citing declining volumes as the main reason.
Namely, the company explained that its operations in Portugal faced declining volumes, while the synergy between the Portuguese ports and Svitzer’s remaining European and global portfolio “has proven limited.”
Following a strategic review of its portfolio, Svitzer has decided to divest its marine operations in Portugal, that covered the ports of Lisbon, Setubal, and Sines services by a fleet of 15 tugs.
The company added that the move is in line with its wider corporate growth strategy.
“The market conditions in Portugal are difficult, especially the declining volumes. We want to deliver not only strong operational performance but also strong financial performance everywhere we operate. The divestment will free up time and resources to execute our wider corporate strategy and to pursue other growth opportunities,” Kasper Friis Nilaus, managing director, Europe, Svitzer, commented.
Pioneiro do Rio, Serviços Maritimos, will fully acquire Svitzer’s two Portuguese companies in a deal that includes crew and shore staff, as well as Svitzer Portugal’s tug fleet.
Subject to customary closing conditions, the deal is expected to take place in the second half of 2019.
Financial details of the transaction were not revealed.