Forth Ports announces £46m Nordic takeover

Published on Saturday 30 June 2007 00:36

FORTH Ports, the listed ports operator and landowner that is constantly the subject of takeover rumours, has made an acquisition of its own with the £46 million purchase of Nordic Group.

Kent-based Nordic, which will soon operate at Forth's docks on the River Thames, has a port-terminal operation, a materials recycling business and a data management and storage business. The deal includes assuming 13m debt, but it is expected to be earnings enhancing in the first year.

Chief executive Charles Hammond said the target had high-quality customers and secured contracts, and would increase the services Forth could offer its own customers.

"This acquisition also underlines our commitment to recycling and improving environmental efficiency," he said.

Nordic is expected to be integrated in the second half of the year.

Forth Ports also released a trading statement saying the first half was expected to be in line with forecasts, and the second half should be stronger than the first, driven by stronger container volumes which had been lower in the first half.

The company, which has a major landholding in Leith which it plans to develop itself, said the Scottish Parliament's decision to allow the tram project would "greatly assist" the regeneration of Edinburgh's Waterfront.

Its shares fell 20p to 1,845p.