DFDS to sell Oslo/Copenhagen route

2024-06-14T21:43:56+00:00 June 14th, 2024|Marketing|

DFDS is to sell its long running mini-cruise route between Norway and Denmark to Swedish shipping company Gotlandsbolaget for around DKK400 mill.

The decision will ensure that the route receives the future focus and investments needed to further develop, while DFDS will strengthen its focus on its core business within freight, passenger transport and logistics.

DFDS has two ropaxes operating between Oslo and Copenhagen via Frederikshaven.

The sale includes the two vessels deployed on the route, port agreements and terminal equipment. As part of the sale, around 800 employees in route operations and support functions will also move to Gotlandsbolaget.

“The route is a part of our history and heritage, and it is with a heavy heart that we have found a new home for the route and will be saying goodbye to a lot of valued colleagues. We have determined this to be the best way forward for all. We have grown and developed significantly over the years, and the route deserves to be in the hands of an owner with cruise experience as a core part of their strategy going forward. We are happy to have found that with Gotlandsbolaget,” explained DFDS CEO, Torben Carlsen.

This route is first and foremost a cruise experience route carrying more than 700.000 passengers between Norway and Denmark each year.

It fits well with Gotlandsbolaget’s strategic focus: “We see great potential in this business. The route is performing well today, and together with our new colleagues, we will both work to ensure continuity and develop the product. This is yet another step in our strategic direction to expand in passenger shipping,” explained Håkan Johansson, Gotlandsbolaget CEO.

The sale of the route reflects DFDS’ strategic focus on providing transport and logistics services using a combination of ferry, road, and rail transport.

“The decision to sell the OFC route has been difficult. We believe it is the right decision and right timing for both the route and DFDS. Going forward we will focus on our core business activities within freight, logistics and transport passengers as we continue to execute on our Moving Together Towards 2030 strategy unlocking the potential of our transportation network,” Carlsen added.

The two vessels, ‘Crown Seaways’ and ‘Pearl Seaways’, will not be reflagged in connection with the transaction and no layoffs are planned as part of the route’s transfer.

When the transaction is finalised, DFDS will have 21 Danish-flagged vessels employing around 1.100 seafarers. In addition, DFDS employs over 1.000 people across more than 10 land-based offices, terminals and logistics sites in Denmark.

Following this transaction, DFDS will employ a total of 13.200 people.

The sale price is around DKK400 mill and the agreement, which also includes a potential earn-out payment, is expected to close in October, 2024.

The completion of the transaction is subject to customary closing conditions while no regulatory approval conditions apply.