Dockwise Joins Forces with Yacht Path
Dockwise Ltd. announced plans for its wholly owned subsidiary Dockwise Yacht Transport (DYT) to merge with Yacht Path International Inc. The combination of Yacht Path with DYT will create an enterprise capable of transporting yachts of any size to any destination around the globe and broaden the scope of services to any client, from private owner and charter company to brokers and shipyards.
Yacht Path will contribute its worldwide expertise in lift on/lift off transportation: the chief mode of transport for small to medium yachts up to 80 ft, aboard ocean-going cargo and container vessels. DYT will bring expertise in "float on/float off" transportation for large yachts up to 200 ft on its four submersible yacht carrier vessels. The combination of a reliable fixed schedule between cruising playgrounds and the ability to add extra voyages to new destinations with flexible tonnage will provide yacht owners with increased options for their travels.
The market for yacht transport is a clear niche market with a strong volume share of smaller yachts (<80 ft) and the super yacht segment (>80 ft) representing around 25-30%. Demand for yacht transportation services is mainly generated by yacht owners and charter companies seeking expansion of their cruising grounds to benefit from two seasons within one year (e.g. Mediterranean in the summer and Caribbean in the winter). The market is mainly driven by the increasing global fleet size, as a result of increasing wealth, allowing for a growing charter market and development of new yachting destinations around the world.
For the year 2008 DYT delivered revenues of approximately $50m, and Yacht Path revenues of almost $27m. End of 2008 DYT employed 30 staff, Yacht Path had 11 employees at the same date. The signed letter of intent provides that, after successful conclusion of the due diligence investigation, the combination of the two businesses will be effected through DYT's purchase of the entire issued share capital of Yacht Path. The Yacht Path shareholder group, including members of the current management team, will in that case receive an initial cash consideration of $3m and a final payment of at least $9m in 2012 subject to the achievement of performance targets for the combined business. It is the intention that current managers of both DYT and Yacht Path will take seats in the management of the new combination.