Wednesday, July 26, 2017

Major Expansion of Logistics Interests as Samskip Buys Shipping Group

Subject to Approval Vessel Charters and Staff Transfer in New Deal
Shipping News Feature
NETHERLANDS – NORWAY – Samskip has signed an agreement with the DSD group to acquire Nor Lines, in a major expansion of its shipping, transport and logistics businesses in Norway. Subject to approval by the Norwegian Competition Authority, the deal is expected to close around the beginning of September. Samskip is headquartered in the Netherlands as a holding company but its roots lie firmly in Icelandic territory with regular cargo and container services throughout Europe. Nor Lines became a fully owned subsidiary of DSD in 2011 having had links between the companies for several years previously.

With its head office in Stavanger, Norway, Nor Lines is a diversified logistics business offering domestic and international services, generating an average annual turnover of €110 million. The transaction includes terminal activities nationwide, warehousing and haulage services, while five out of seven multi-purpose vessels will be transferred under a time charter arrangement to Samskip. It also brings 170 employees, based in 14 locations throughout Norway. Post-acquisition, activities will continue operate under the Nor Lines brand name. Ásbjörn Gíslason, Chief Executive Officer, Samskip Logistics said:

“The Nor Lines takeover represents a major opportunity for Samskip. It is a natural but significant extension of our shipping and logistics activities in Norway which will further broaden our customer offerings. Nor Lines financial performance has been disappointing in recent years, but we are confident that by combining our respective strengths and refocusing the business we will create synergies, improve efficiency and provide customers with enhanced services.”

Samskip says its presence in Norway has been significantly strengthened over the past few years through internal growth and several acquisitions. Samskip now transports around 90,000 TEU a year between Norway and Northern Europe, a volume it aims to further increase through the Nor Lines acquisition when it has rationalised routes and services employing the other logistics players it has involvement with in the region.

A wholly owned subsidiary of Samskip, the frigoCare cold store and terminal in Aalesund, serves an important hub in both Samskip's container system and Nor Lines vessel system. Samskip also owns a 50% share in Bergen based Silver Sea AS, which operates a fleet of 14 reefer vessels. Samskip hopes that the combined annual turnover after the Nor Lines takeover will make it a major player in the market. Ingvald Løyning, Chief Executive of DSD commented:

“We are pleased to complete our divestment of Nor Lines and entrust the business to Samskip, in a strategic solution for a specialised business that needs to be part of a larger structure to develop and thrive. We believe that Samskip will be a good home for Nor Lines, and a good solution for our employees and customers.”