J&T acquires OT Logistics

A consortium led by Jaroslav Strnad and the J&T Private Equity Group has acquired a 49.99% stake in OT Logistics, Poland's predominant operator of port services. The transaction, valued at approximately $25.6 million, involves DD Rail Properties—a joint venture of Strnad's SPV Second and Auctor Holding. This acquisition allows the consortium to hold a blocking share in OT Logistics without gaining majority control, as the existing Polish family foundations retain a reduced majority interest.

This strategic acquisition aims to bolster cargo transport connectivity between Northern and Southern Europe, utilizing OT Logistics' established presence in Gdańsk and Świnoujście. By integrating key Polish ports into wider European trade networks, the investors seek to enhance efficiencies within the logistics sector. Despite financial difficulties in recent years—with a reported 50% drop in sales in 2023 and a 70% decrease in EBITDA—the consortium believes in OT Logistics' potential for recovery and growth.

The logistics sector is witnessing increased demand for efficient cargo solutions, making this acquisition significant for European transport dynamics. OT Logistics, with over 70 years in operation and listed on the Warsaw Stock Exchange, is well-positioned to play a pivotal role within this evolving market landscape. The acquisition might stimulate competitive pressure on other logistics and transport entities working across Europe.

Regulatory oversight involves ongoing review by the Czech Republic's Office for the Protection of Economic Competition, with approval expected under a simplified procedure within 20 days. The review primarily examines potential impacts on port operational activities, including transshipment and forwarding services. The deal has already secured approval from Polish regulatory authorities.

The acquisition underscores Strnad and J&T's continued expansion into the logistics arena, complementing previous investments such as the minority stake in Croatia's Luka Rijeka port. Auctor Holding’s stake, alongside its ventures in healthcare distribution and hospitality, further broadens its investment landscape, indicating a strategic alignment towards diversified growth across critical sectors.