Private Equity Investors Negotiating to Buy Historic French Shipping Firm
Louis Dreyfus Amateurs, which today is focused on offshore services, cargo and port operations, and logistics, is set to be acquired by Paris-based private equity firm InfraVia. The firm had been seeking capital from investors to fuel its growth.
According to the announcement, the Louis-Dreyfus family which is the shareholders of the company has entered into exclusive negotiations for InfraVia to acquire a majority stake in LDA. A final agreement is still pending and requires consultation with representatives of the company’s 1,800 employees and regulatory approval.
The proposed terms call for InfraVia to acquire an 80 percent stake in Louis Dreyfus Amateurs. The family would retain a 20 percent ownership position in the group and Edouard Louis-Dreyfus would remain president of the group. Founded in 2008, InfraVia Capital Partners reports it manages €16 billion of capital and specializes in real assets. Including infrastructure, critical metals, real estate, and technology investments.
“This transaction would allow LDA to invest a billion euros over the next few years, enabling the group to more than double the size of its fleet and accelerate its development in technological innovation, energy transition, and the design of tomorrow's navigation modes and maritime services,” the companies said reporting the negotiations.
LDA traces its origins back 170 years to 1890 and the launch of a small fleet of grain feeders navigating on the Sea of Azov and the Black Sea under the Russian flag. After the First World War and the Russian Revolution, the company transitioned in the 1920s to a fleet of ocean-going cargo ships and would remain active in bulkers while more recently adding RoRo, offshore, and port logistics. The last of the cargo ships were sold in the early 2020s.
Today, LDA specializes in three segments, transportation and logistics of industrial equipment, mainly through dedicated RoRo vessels, maintenance of offshore wind farms, and installation and maintenance of submarine telecom and power cables. With a worldwide presence, LDA manages a fleet of 23 vessels. Building on a long-term partnership with Airbus the company recently ordered a new generation of wind-assisted propulsion RoRos and is developing new offshore service vessels.
With InfraVia as a shareholder, LDA says it would accelerate its ambitions to become a leading maritime infrastructure. InfraVia it highlights has the necessary expertise to support its growth ambitions and accelerate the group's digitalization and energy transition.
The transaction is expected to be completed in the first half of 2025.