The company expanded in 1900 by acquiring 20 ships from the West India and Pacific Steamship Company. The firm was then reorganised as Frederick Leyland (1900), and operated with a capital of £2,800,000. In 1901 the company was bought by J. P. Morgan's International Marine Mercantile Company, but Ellerman remained as chairman, and the owner of 20 ships. He later acquired the Papayanni Steamship Company and eight of its ships. He used these assets to form the London, Liverpool and Ocean Shipping Company, based at Moorgate in London.