Eimskip acquires Norwegian shipping company
Eimskip Ltd. has entered into an agreement to acquire Norwegian shipping and logistics company Nor Lines for 15 million euros (U.S. £16.6 million), subject to adjustments based upon the latter’s financial performance for the year 2016, the company said in a statement.
The Icelandic ocean carrier said its purchase and restructuring of asset-light Nor Lines to align with Eimskip’s existing operations in Norway will allow the company to broaden its value-added service offerings.
“Norwegian exporters and importers will also benefit from the synergy between the liner services of the two companies,” Eimskip said.
Founded in 1930, Nor Lines employs about 200 people in Norway and has estimated annual revenues of 110 million euros, according to Eimskip. The company handles general and reefer ocean freight, as well as landed cargo in Norway.
Nor Lines operates a fleet of seven cargo vessels that sail in three different trade lanes to and from Norway.
Under the restructuring program, Eimskip will take over the operation of five of these vessels, an effort to strengthen the combined service network between Norway, continental Europe and the Baltic Sea. Only one the five vessels will be owned, while the other four will be chartered, the company said.
In addition, the purchase gives Eimskip access to Nor Lines’ land-side network of 60 owned and agent-operated terminals along the Norwegian coast, allowing the company to offer door-to-door intermodal services.
Nor Lines offers warehouse and freight forwarding services via a network of 450 third-party trucks covering 50 direct lines between the company’s 14 in-house terminals.
The transaction is expected to close in first quarter 2017, subject to approval by the Norwegian Competition Authority.
“The acquisition of Nor Lines is a large step in widening the service scope and strengthening the current services of Eimskip in Norway,” Eimskip President and CEO Gylfi Sigf?sson said of the deal. “Eimskip is currently operating seven side-loaded reefer vessels in Norway, which serve between Norway, the Netherlands and the UK, but the acquisition will increase our efficiency since our sailing system will range over to the Baltic Sea and Germany.
“We look forward to working with the employees of Nor Lines on improving the efficiency of the two companies,” he added. “The transaction is a part of Eimskip’s accretive strategy of external growth and will further strengthen the company’s liner services in Norway.”
“DSD started the process of finding a strategic solution for Nor Lines early this year,” said Ingvald L?yning, chief executive officer of DSD. “We believe that further consolidation is needed in the logistics industry, and that Nor Lines needs to be a part of a larger structure to be able to further develop its business.
“We are very pleased with finding a new home for Nor Lines under the Eimskip umbrella and think that this is a very good solution for both the customers and the employees of Nor Lines,” L?yning said. “After some challenging years, the sale of Nor Lines will enable the DSD group to increase its focus on public transportation through Norled AS and Tide ASA and international shipping through DSD Shipping AS.”