London-headquartered shipbroking and services firm Braemar has completed the planned sale of its logistics business, Cory Brothers (Cory) to Vertom Cory Holdings, a newly formed subsidiary of Dutch firm Vertom that has similar operations, mainly in northern Europe.
The move is said to be part of the group’s plans to streamline its operations to focus on a new growth strategy centred on shipbroking. The all-cash consideration includes an initial cash payment of £6.5m, as well as three further payments based on the percentage of the gross profit of the newly formed Vertom-Cory business for the earnout period ending on December 31, 2024. The three earnout payments will total a minimum of £3.75m and a maximum of £9m. Braemar stated that the proceeds from the sale would be used to reduce net debt and strengthen the balance sheet under its strategy.
Cory comprises a port and hub agency business and a liner and freight forwarding business. The company services UK ports, the port of Singapore, and ports in North America and the Netherlands, and has joint arrangements with several agency partners. The disposal is being structured as the sale of all shares in three separate legal entities from within the group, Cory Brothers Shipping Agency Limited, Cory Brothers Inc. and Cory Brothers Shipping Agencies Pte Limited. Following the disposal, the relevant Cory employees, including Cory managing director Peter Wilson and finance director David Noble, will leave the Braemar group to take up similar roles with the new Vertom-Cory business.