REG - Braemar Shipping - Disposal of Cory Brothers

BraemarAnnouncement

01/03/2022 07:00

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RNS Number : 1176D  Braemar Shipping Services PLC  01 March 2022

 

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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 £10.25m and £15.5m spread over three earnout periods ending on 31
December 2024. The all-cash consideration comprises initial cash proceeds of
£6.5 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 £3.75 million and a maximum of £9 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 £28.1 million and an underlying operating profit of £1.2 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 £27.9 million and net assets of £4.1 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 Officer                 Tel +44 (0) 20 3142 4100
 Nick Stone, Chief Financial Officer
 Investec Bank plc
 Chris Treneman / Gary Clarence / Alex Penney / Alice King  Tel +44 (0) 20 7597 5970
 Buchanan
 Charles Ryland / Stephanie Whitmore / Matilda Abraham      Tel +44 (0) 20 7466 5000

 

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 (http://www.braemar.com/)

 

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