Eimskip Acquires Nor Lines
Iceland-based Eimskip has agreed to acquire Norwegian shipping and logistics company Nor Lines. According to Eimskip, the operation of Nor Lines has been challenging in recent years and the business will be restructured in order to improve the firm’s services.
In a press release on November 16th, Eimskip stated: " With reference to a press release from Eimskip dated 2 November, the company emphasizes the following: Eimskip has entered into an agreement to acquire the Norwegian shipping and logistics company Nor Lines. Nor Lines is a strategic fit in Eimskip’s core market and the overall transaction is asset-light."
The final purchase price is subject to adjustments based upon the company’s financial statements for the year 2016. The approximate purchase price is EUR 15 million and can decrease or increase based on the financial performance of Nor Lines for the year 2016.
As disclosed in the previous press release, the operation of Nor Lines has been challenging in recent years. Eimskip sees opportunities in restructuring the operation and has, as a part of the acquisition, ensured favorable agreements on the operation of Nor Lines’ sailing system.
Further synergy effects will be implemented by merging with Eimskip’s sailing system in Norway. Eimskip’s goal is to achieve 6-8% EBITDA margin as in other asset-light operations of the company.
As stated in the previous release, Eimskip will in addition to the above acquire one of the vessels currently operated by Nor Lines (the Nordkinn) for a purchase price of EUR 8 million. The vessel and other two of the four chartered vessels (the Silver River and Silver Lake) were built by Eimskip Norway and operated by the company until 2009.
Subject to the approval of the Norwegian Competition Authority it is anticipated that the transactions will close during the first quarter 2017.
