The strategic restructuring at the Dutch shipping company Vroon continues. The company is now to withdraw from the livestock shipping business after all.
At the beginning of 2024, after a long break, a ship was purchased and potential was seen in the market, but now it seems to be over: Vroon Holding announced today that it has agreed to sell its livestock transport activities under the umbrella of its subsidiary Livestock Express to the Heytesbury Group.
The Australian group is active in agribusiness, cattle trading and shipping and will acquire the fleet for an undisclosed price. “This transaction marks another important step in the realignment of Vroon,” said Vroon. In future, the company intends to focus on its “key niche markets” in the energy, liquid bulk, infrastructure and offshore wind energy sectors.
The shipping company has had an extremely turbulent few years, which almost drove it to ruin. There has already been a fleet sale and a change of CEO. The purchase of the “Aurochs” for the livestock fleet was apparently only a brief flash in the pan. In the past, there was talk that the offshore fleet of 40 ships was to be sold after more than a dozen financiers and banks took over the majority of shares in the highly indebted company. Previous rescue attempts had failed. Vroon had also withdrawn from container shipping. The company will now remain in the offshore sector.
“Today marks a special moment: it marks the last chapter of Livestock Express within the Vroon Group and at the same time the beginning of a new chapter under the future owner,” explained Vroon CEO Martijn Schouten. “We are proud of all those who have contributed over the past 60 years to building Livestock Express into the world’s largest independent livestock transportation company, equipped with a fleet of modern, purpose-built vessels. With Heytesbury as strategic owner, we are delighted that both the entire workforce and the legacy Vroon has created in this trade segment are in safe and reputable hands and have a solid outlook for the future.”
The sale is intended to strengthen Vroon’s financial position and create a solid foundation for the company’s activities in niche markets. “We have a healthy balance sheet, a clear operational focus and a strong positioning in each of our niche markets,” Schouten added. “This provides a solid foundation for the further development of our business.”
Under the terms of the agreement announced today, Heytesbury will acquire all eleven Vroon-owned livestock vessels and 100% of the shares in Livestock Express Pte Ltd, as well as Livestock Express’ Singapore facility and third-party vessel technical management services. Heytesbury has undertaken to continue business operations unchanged (“business as usual”).
“We already have a close relationship with the Livestock Express team and are very much looking forward to operating as a single entity in the future,” said Paul Holmes à Court, CEO of Heytesbury. “It is vital that Livestock Express continues to operate independently and serve markets around the world under its own brand. We are both part of an essential global protein trade and tens of millions of people worldwide rely on this fleet to secure their food supply.”
