Kotug Smit Towage agree to sell to Boluda

It was as recently as April 2016 that Kotug and Boskalis shook up the north west European port towage scene with the completion of its plans, announced at the end of 2015, to form a joint venture arrangement to be known as Kotug Smit Towage which at the time covered shiphandling services at 11 ports in four countries: the Netherlands, Belgium, Germany and the United Kingdom.

Just three years later both shareholders have announced their intention to sell the total 100% enterprise value of Kotug Smit Towage to the Spanish Boluda Group. Under the terms of the LOI the total value of Kotug Smit Towage is stated as EUR 300m and Boskalis reports that it expects to receive approximately EUR 90m in cash for its 50% equity stake.

While Kotug Smit Towage successfully expanded its presence into new ports and realised synergy, efficiency savings and smarter towage operations both partners are now of the opinion that a further consolidation of the European harbour towage market would be beneficial, a vision shared by Boluda. Kotug state that shipping alliances are expected to continue to impact the European market and this consolidation will enable Kotug Smit Towage to adequately respond to the development.

Boluda’s history dates back to 1837 with its towage operations originating in Valencia in 1920 and like Kotug are a family-owned business. It is considered to be leading operator in the Spanish and French markets and with a fleet of over 230 vessels also holds an important international position in major ports in Europe, Africa, the Indian Ocean and Latin America.

Like both Boluda and Boskalis, Kotug is an expanding company with an increasing global presence and the company’s CEO Ard-Jan Kooren: said: “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 and allow us to offer operational excellence and innovation to our customers.”

The final agreement is subject to satisfactory due diligence and regulatory approvals from the respective national authorities involved with closing of the deal scheduled for the second half of 2019.

By Peter Barker