The company was incorporated in 1892, by the businessmen John Ellerman, Christopher Furness and Henry O'Hagan, who bought the assets of the Liverpool based shipping firm Frederick Leyland and Co Ltd. The company started with an initial capital of £800,000 to buy the fleet of 22 vessels from the executors of Frederick Leyland, the former head of Frederick Leyland and Co. Ellerman was initially the managing director, and Furness the chairman, but Ellerman had taken on the role of chairman himself by 1893.