Icelandic shipping firm Eimskip has announced that it has entered into an agreement to acquire the Norwegian shipping and logistics company Nor Lines. Eimskip said Nor Lines is a strategic fit with its core market and the overall transaction is asset-light.
Nor Lines will be restructured in order to improve the company’s services and profitability by aligning it with Eimskip’s current operations in Norway.
The purchase price is around EUR15m ($16.6m) and can decrease or increase based on the financial performance of Nor Lines for the year 2016.
Nor Lines currently operates a fleet of seven cargo vessels. Eimskip will take over the operation of five vessels out of the seven to strengthen the combined service network between Norway, continental Europe and the Baltic Sea.
“The acquisition of Nor Lines is a large step in widening the service scope and strengthening the current services of Eimskip in Norway. 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. The transaction is a part of Eimskip’s accretive strategy of external growth and will further strengthen the company’s liner services in Norway,” commented Gylfi Sigfússon, President and CEO of Eimskip.