“DFDS has today completed the acquisition of the international transport network of Ekol Logistics. Ekol Logistics is a leading Turkish transport and logistics company based in Istanbul,” the Danish company announced in an official statement today, 15 November.
The revised terms of the acquisition, which now include an adjusted debt structure and an option to extend the terminal agreement with Yalova Port, have been agreed upon since the termination of the share purchase agreement on 1 November 2024. This acquisition is expected to bolster DFDS’ capabilities and expand its influence within the Mediterranean region.
Ekol Logistics operates a robust transport network between Türkiye and Europe, with offices and facilities in ten European countries. Over half of its transport services are intermodal, involving combinations of road, ferry, and rail, making Ekol the largest customer of DFDS’ Mediterranean ferry route network.
“DFDS’ acquisition of Ekol’s international transport network greatly enhances our ability to provide a reliable and efficient transport infrastructure supporting Türkiye’s continued growth as a manufacturing hub. Given the revised terms, well-prepared business plans, and the strength of our expanded network, we are well positioned to protect and grow our Mediterranean business,” stated DFDS CEO Torben Carlsen, commenting on the acquisition.
Ahmet Musul, founder and Chair of the Board of Directors of Ekol Logistics, added,:
“The strategic logic of the sale of Ekol Logistics’ international transport network to our longstanding partner DFDS is compelling. On behalf of all my great colleagues, I’m therefore very pleased we came together again and forged a revised agreement. A new growth story can begin.”
The acquisition aligns with DFDS’ strategy to enhance its transport network by integrating road transport with its existing Mediterranean ferry network. This move is expected to extend DFDS’ proven northern European business model to the Mediterranean region while expanding its logistics network across Europe and connecting it to Türkiye. This expansion aims to provide end-to-end transport and logistics solutions directly to customers trading between Türkiye and Europe.
Despite the potential growth opportunities, Ekol Logistics has faced financial challenges recently, with its EBIT margin declining to 2.5% in 2023 and an expected loss for 2024. However, DFDS has outlined a comprehensive business and integration plan to improve the company’s financial performance, targeting an EBIT margin of around 5% by the end of 2027. This plan includes three phases focusing on commercial and operational improvements, network integration, and optimisation.
The acquisition, valued at DKK 1.8 billion (EUR 240 million) on a debt-free basis, is financed through a combination of loan financing and existing cash funds. All necessary regulatory approvals have been obtained, allowing the transaction to proceed.
This announcement comes shortly after DFDS reported last week that it had terminated its acquisition of Ekol Logistics and lowered its financial outlook for 2024 due to market challenges and unfulfilled contractual conditions. At that time, DFDS revised its estimated EBIT for 2024 to a range of DKK 1.5-1.7 billion, down from an initial estimate of DKK 1.7-2.1 billion, and reduced its adjusted free cash flow forecast to around DKK 1.2 billion from a previous expectation of DKK 1.5 billion.