Published 2016-11-03 00:00:00
Eimskip to acquire NOR-Lines

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.
The operation of Nor Lines has been challenging over the past years and the business will be restructured in order to improve the company’s services and profitability by aligning it with Eimskip’s current operations in Norway. The acquisition will give Eimskip an opportunity to offer broader value added services to its customers. Norwegian exporters and importers will also benefit from the synergy between the liner services of the two companies. The estimated annual turnover of Nor Lines amounts to approximately EUR 110 million and the company has about 200 employees. The acquisition is financed with cash.

The history of Nor Lines goes back to 1930 and the company is currently operating an extensive service network in Norway, handling general and reefer cargo on sea and land. Nor Lines offers regular services to and from Norway and has over the past years built up a land transport system where, among other, rail transport is an important element in a number of service routes.

Today, Nor Lines operates a fleet consisting of seven cargo vessels that operate three different trade lanes in and out of Norway. Restructuring will be made to the vessel fleet and the operation of the company, where Eimskip will take over the operation of five vessels out of the seven and thereby strengthen the combined service network between Norway, continental Europe and the Baltic Sea. Out of the five vessels, one will be owned and four will be chartered.

Nor Lines is providing an extensive land operation with a network of 60 terminals along the Norwegian coast which connect the trucking and sea operation, providing a door-to-door solution. Out of the 60 terminals, the company is operating 14 terminals and 46 are operated by agents. Through the network, the company is also providing warehouse operations and freight forwarding. Nor Lines’ service network consists of 450 trucks, owned and operated by third party, that cover the land based transportation, operating 50 direct lines between the 14 terminals.

Furthermore, Nor Lines is selling cargo capacity on the 11 vessels of Hurtigruten, which operates along Norway’s western and northern coast, calling 32 ports on a daily basis.
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.

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