3i acquires Allianz Capital Partners' stake in Scandlines
3i Group plc (“3i”), an international investor, has signed an agreement with existing co-shareholder, Allianz Capital Partners (“ACP”), the captive, alternative asset investment platform of Allianz Group, to acquire their stake in Scandlines. 3i, and funds managed by 3i, will consequently become majority shareholders.
3i, and funds managed by 3i, are investing €165m to facilitate the acquisition of ACP’s 49% stake in Scandlines, one of the largest ferry operators in the Baltic Sea. The closing of the transaction is expected to take place before the year end.
As part of 3i’s acquisition of ACP’s stake, the company has successfully refinanced its current debt facilities into a new €875m package. This has been well received in the debt capital markets and provides a firm foundation for Scandlines’ future strategic objectives.
3i and ACP initially invested in Scandlines in June 2007, acquiring 40% of the shares each. They subsequently acquired Deutsche Seereederei’s 20% stake in 2010.
Over the last six years, 3i and ACP have taken a pro-active approach to their investment in Scandlines, progressing a number of initiatives including strengthening the management team, introducing operational improvement programmes and refining the business concept with an increased focus on the customer experience as well as yield management.
Under 3i and ACP’s stewardship, Scandlines has been transformed from a state-owned, diversified company to a focused, short sea route specialist. In 2011, the company disposed of its long-distance freight routes to Stena to focus on its core business. The decision to build two new ferries for the Rostock-Gedser route will provide increased capacity to capture the corridor growth driven by Central and Eastern European traffic.
Peter Wirtz, 3i Partner and Managing Director Germany, commented: “Scandlines is a successful and profitable business that we’ve got to know well during the past six years. We’re pleased to be investing further to support the management in executing the company’s future plans and to benefit from the company’s growth prospects.”
Jörg Spanier, Managing Director at Allianz Capital Partners said: “We have been successfully invested in Scandlines for the last six years and have greatly enjoyed working with our partner 3i and the management team of Scandlines to reposition the company. Since the acquisition in 2007, Scandlines has been transformed from a complex state owned company with limited strategic focus into a modern and efficient ferry operator focused on the most profitable “Traffic Machine” routes. The business is now well-positioned to maximise its potential and to continue to pursue its growth strategy.”
Søren Poulsgaard Jensen, CEO of Scandlines, commented: “We'd like to thank ACP for their support over the past six years. ACP and 3i have actively accompanied the development of our business and played a key role in the success and growth of our company during this time. We look forward to building on this progress and securing a market-leading position under the new 100% ownership of 3i.”
For further information, contact:
3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Allianz Capital Partners
Tel: +49 89 3800 2063
Allianz Capital Partners
Tel: +49 89 1220 7602
Notes to editors:
About 3i Group
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.
About Allianz Capital Partners
Allianz Capital Partners (ACP) is the captive, alternative asset platform of Allianz Group with assets under management of about 9.4 billion euros. ACP’s investment strategy is driven in particular by matching the long-term obligations of the Allianz Group’s life insurance businesses with assets that generate long-term, stable and inflation-protected cash flows provided, for example, by investment opportunities in the infrastructure and renewables sector.
Together with its customers and sales partners, Allianz is one of the strongest financial communities. Around 78 million private and corporate customers rely on Allianz's knowledge, global reach, capital strength and solidity to help them make the most of financial opportunities and to avoid and safeguard themselves against risks.
Scandlines is one of the largest ferry operators in the Baltic Sea, transporting in excess of 11m people per year. The business operates 9 ferries between Germany, Denmark and Sweden and benefits from the growing traffic corridors between these countries which, in turn, is driven by the solid economic growth across the Nordic region.
In addition to providing retail and catering services on-board its ferries, Scandlines also operates 2 land-based retail shops under the BorderShop umbrella. At 8,000 m², its Puttgarden BorderShop is one of the largest border shops in the world, serving more than 700,000 customers per year.