Braemar Shipping Services PLC Disposal of Cory Brothers (1176D)
March 01 2022 - 2:00AM
UK Regulatory
TIDMBMS
RNS Number : 1176D
Braemar Shipping Services PLC
01 March 2022
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REGULATION (EU NO. 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF
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IN THE PUBLIC DOMAIN.
1 March 2022
BRAEMAR SHIPPING SERVICES PLC
("Braemar", the "Company" or the "Group")
Disposal of Cory Brothers
Braemar, a leading international Shipbroker and provider of
expert advice in shipping investment, chartering and risk
management, is pleased to announce that it has completed the
planned disposal of its Logistics Division, Cory Brothers ("Cory")
to Vertom Cory Holdings Ltd (the "Buyer"), for a total of between
GBP10.25m and GBP15.5m spread over three earnout periods ending on
31 December 2024. The all-cash consideration comprises initial cash
proceeds of GBP6.5 million, together with three further payments
based on the percentage of the gross profit of the newly formed
Vertom-Cory business for that earnout period ending on 31 December
2024. The three earnout payments combined will be a minimum of
GBP3.75 million and a maximum of GBP9 million.
The disposal is the last key element of the board's new strategy
of simplifying the Group's operations in order to concentrate on a
new growth strategy centred on Shipbroking. The board intends to
use the consideration from the disposal to reduce net debt and
strengthen the balance sheet in furtherance of this strategy.
Cory comprises a port and hub agency business and a liner and
freight forwarding business. The business services UK ports, the
port of Singapore, and ports in North America and the Netherlands
and has joint arrangements with a number of worldwide agency
partners. The buyer is a newly formed subsidiary of Vertom B.V.
that has similar operations, mainly in northern Europe.
For the year to 28 February 2021, Cory generated revenue of
GBP28.1 million and an underlying operating profit of GBP1.2
million. At the last reported balance sheet of 31 August 2021,
Cory's assets were held for sale on the Group balance sheet and
comprised gross assets of GBP27.9 million and net assets of GBP4.1
million.
The disposal is being structured as the sale of 100% of the
shares in three separate legal entities from within the Group, Cory
Brothers Shipping Agency Limited, Cory Brothers (USA) Inc. and Cory
Brothers Shipping Agencies (S) Pte Limited. The relevant Cory
employees, including Cory Managing Director, Peter Wilson and
Finance Director, David Noble, will leave the Braemar group to take
up similar roles with the new Vertom-Cory business after the
disposal.
James Gundy, CEO of Braemar said:
'The disposal of Cory is the last key step in the execution of
our stated strategy of refocusing Braemar on our shipbroking core
and I am pleased that the buyers of Cory are a long-term strategic
partner. We look forward to continuing to work with them under
their new ownership and seeing the business thrive.'
Arjan de Jong of Vertom B.V. said :
'After years of close co-operation we come to a new chapter with
the acquisition of Cory. This acquisition enables us to create a
strong European port agency and freight forwarding division under
the name VertomCory. We are delighted and want to welcome Peter,
David and their team to the Vertom family and are looking forward
to let the business grow.'
For further information, contact:
Braemar Shipping Services
James Gundy, Group Chief Executive Tel +44 (0) 20 3142 4100
Officer
Nick Stone, Chief Financial Officer
Investec Bank plc
Chris Treneman / Gary Clarence Tel +44 (0) 20 7597 5970
/ Alex Penney / Alice King
Buchanan
Charles Ryland / Stephanie Whitmore Tel +44 (0) 20 7466 5000
/ Matilda Abraham
Notes to Editors:
About Braemar Shipping Services Plc
Braemar is a leading international Shipbroker and provider of
expert advice in shipping investment, chartering and risk
management. Braemar employs approximately 520 people in 30 offices
worldwide across its Shipbroking and Financial.
Braemar joined the Official List of the London Stock Exchange in
November 1997 and trades under the symbol BMS.
For more information, including our investor presentation, visit
www.braemar.com
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END
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