Royal Boskalis Westminster (Boskalis) and Kotug International have signed a letter of intent (LoI) to divest Kotug Smit Towage to Boluda Group (Boluda).
Under the LoI, the total enterprise value of Kotug Smit Towage is €300m.
Through this transaction, Boskalis expects to receive around €90m in cash against its 50% holding in the Kotug Smit Towage joint venture (JV).
Established in 2016, the Kotug Smit Towage JV included 11 ports across the Netherlands, Belgium, Germany, and the UK at that time. Subsequently, the JV expanded its footprint to new ports.
The companies believe that further consolidation of the European harbour towage market will be beneficial.
Boluda established its tug boat business in 1920 in Spain. The company currently operates more than 230 vessels and holds a strong presence across the key ports of Europe, Africa, the Indian Ocean, and Latin America.
The transaction is expected to bolster Boluda’s business further.
The LoI is expected to close in the second half of this year, subject to customary conditions, including due diligence and regulatory consent from all respective countries involved.
Royal Boskalis Westminster is a Dutch company that focuses on the dredging, maritime infrastructure and maritime services sectors businesses.
The company offers solutions to various infrastructural challenges across the maritime and coastal sectors.
It has more than 900 vessels and employs around 10,700 people.
Horizon Group is engaged in providing marine geophysical surveys and geotechnical services.