In an effort to expand its presence in Norway, the Reykjavik-based shipping company Eimskip has reached an agreement to acquire the Norwegian shipping and logistics company Nor Lines.
The company now plans to restructure Nor Lines’ business in order to improve its services and profitability by aligning it with Eimskip’s current operations in Norway.
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.
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.
Completion of the transaction is subject to approval by the Norwegian Competition Authority.
The estimated annual turnover of Nor Lines, which handles general and reefer cargo on sea and land, amounts to around EUR 110 million (USD 122 million). Eimskip said that the acquisition is financed with cash.
“The acquisition of Nor Lines is a large step in widening the service scope and strengthening the current services of Eimskip in Norway,” Gylfi Sigfússon, President and CEO of Eimskip, said.