The Icelandic shipping operator Eimskip acquired the Norwegian shipping and logistics company Nor Lines for 16.6 million USD. The transaction will be financed in cash and will improve the flexibility and market competitiveness of the Icelandic shipping operator in Norway. Eimskip will continue to operate the services of Nor Lines, but will make a large-scale restructuring in the company, cutting the expenses and improvement of the efficiency of operations. According to preliminary estimates, at lest 30% from the workforce of Nor Lines will be laid-off and two vessels will be decommissioned.
Currently Nor Lines operates a fleet consisting of seven cargo vessels that operate three different trade lanes in and out of Norway. The company has 200 employees and annual turnover of 130 million USD. After the restructuring, Eimskip will take over operation of five vessels, including one owned and four chartered. The three freighter services in and out of Norway will remain, but the loops might be changed.
“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”, said the President and CEO of Eimskip, Gylfi Sigfusson. “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”, added he.
Eimskip the oldest shipping company in Iceland. The company is leading transportation company providing outstanding services through a dependable transport system in the North Atlantic and an extensive worldwide network. The company has services connecting Iceland with Greenland, Canada, Scandinavian countries and Western Europe.