PD Ports Announced for Sale with Over £2 Billion Valuation
PD Ports, one of the largest port operators in the UK, has placed itself on the market with a valuation exceeding £2 billion, leveraging Ed Miliband’s environmental initiatives as it embarks on this sale.
The offering includes a stake of up to 50% in PD Ports, which is primarily based in Teesside but also operates in Felixstowe, Hull, and Immingham. The sale process has commenced with initial marketing materials distributed to prospective buyers.
The company is owned by Brookfield, a Canadian infrastructure investment firm, which is overseen by Mark Carney, former governor of the Bank of England.
Code-named Project Westeros, a reference to the fantasy world in HBO’s Game of Thrones, the sales process is being managed by investment bankers from CIBC and RBC.
PD Ports’ facilities at Teesport and Hartlepool fall within the UK’s largest freeport in Teesside, which offers various incentives related to customs, taxation, planning, infrastructure, and innovation.
This freeport is set to support a variety of green technologies, including the manufacture of turbine blades destined for North Sea offshore wind farms.
The sales documentation highlights a quote from Ed Miliband, the Secretary of State for Energy Security and Net Zero, stating, “Our department will central to the new government’s agenda, leading one of the prime minister’s five national missions, aimed at transforming Britain into a clean energy superpower with zero carbon electricity by 2030, accelerating our journey toward net zero.”
Projected annual earnings before interest, taxes, depreciation, and amortization (EBITDA) for PD Ports are estimated at £100 million, with Brookfield looking for a valuation reflecting 20 to 22 years of profit, placing it above £2 billion.
After previously halting the company’s auction in 2021 due to disputes with local Conservative mayor Lord Houchen regarding access rights, Brookfield hopes for a successful sale this time. A High Court ruling yielded mixed results for both parties, yet PD Ports emerged as the favored entity.
Employing approximately 1,400 individuals, PD Ports operates 11 sites across the UK, with Teesport and Hartlepool contributing to 90% of its earnings.
In 2021, marketing efforts for the canceled sale revealed that the company possessed 2,400 acres of freehold land and generated around £75 million in annual EBITDA.
Both Brookfield and PD Ports have opted not to provide further comments regarding the sale.
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