InterBulk To Be Acquired For GBP42.1 Million As Profit Declines

LONDON (Alliance News) - Chemical, polymer, food and mineral industries logistics provider InterBulk Group PLC on Wednesday said it has agreed to be taken over by Dutch logistics company Den Hartogh Holding BV, as its annual pretax profit declined.

InterBulk said it would be acquired by Den Hartogh for 9.00 pence per share, more than double its closing price on Tuesday of 4.00p. The agreement values InterBulk at GBP42.1 million in total.

InterBulk said its board of directors has unanimously recommended the takeover offer and expects the deal to complete in the first quarter of 2016.

"We believe this transaction is good for our shareholders, our employees and our customers. The combined business will have the scale and global reach necessary for long term growth and success," said David Rolph, InterBulk's chairman.

The news of the takeover came as InterBulk posted a decline in its pretax profit for the year to GBP295,000 from GBP3.2 million a year earlier, as revenue fell to GBP225.3 million from GBP256.3 million.

The fall in sales was down to destocking by its customers, triggered by falling oil prices, more competition in the liquid bulk market, continued restructuring in the European polymer industry and unfavourable currency movements, the company said.

"The 2015 financial year has seen challenging market conditions with pressure on volume and margin. Our variable cost model has been invaluable in this environment, and our team's focus on driving cost improvements to protect our margin levels has been of key importance. Overall, and considering the headwinds faced in the current year, we are satisfied with the results for the year," said Loek Kullberg, InterBulk's chief executive.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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