Eimskip has entered into an agreement to acquire the Norwegian shipping and logistics company Nor Lines, from the latter’s parent company, DSD. 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 acquisition is expected to give Eimskip an opportunity to offer broader value added services to its customers. The estimated annual turnover of Nor Lines amounts to approximately €110m. The acquisition is financed with cash and completion of the transaction is subject to approval by the Norwegian Competition Authority.
Nor Lines currently handles general and reefer cargo on sea and land in Norway. It offers regular services to and from Norway. Rail transport is an important element in a number of the company’s service routes.
Its fleet consists of seven cargo vessels that operate three different trade lanes in and out of Norway. It was announced that 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 in order to 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 operates a network of 60 terminals along the Norwegian coast which connect the trucking and sea operation. Its service network consists of 450 trucks, owned and operated by third parties, that cover the land based transportation. Furthermore, Nor Lines is selling cargo capacity on the 11 vessels of Hurtigruten, which operates along Norway’s western and northern coast.
Gylfi Sigfússon, President and CEO of Eimskip, said, “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.”
Ingvald Løyning, CEO of DSD, said, “DSD started the process of finding a strategic solution for Nor Lines early this year. 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”.