Wilhelmsen and Wallenius have signed a let[ds_preview]ter of intent to establish a new ownership structure for their jointly owned investments. The merger is expected to enable synergies between 50-100 mill. $.
Both parties will combine their ownership in the jointly owned entities Wallenius Wilhelmsen Logistics (jointly owned 100%), EUKOR Car Carriers (jointly owned 80%) and American Roll-on Roll-off Carrier (jointly owned 100%) in a new entity to be named Wallenius Wilhelmsen Logistics ASA. In addition, the parties have agreed to merge the ownership of the majority of their vessels and affected assets and liabilities.
»The markets are going through rapid change and require
a more agile and efficient business model«.
Thomas Wilhelmsen, chair of Wilh. Wilhelmsen ASA
When the transaction is completed, Wilh. Wilhelmsen Holding ASA and Wallenius Lines AB will have equal ownership in the new entity and plan to own approximately 40% each. The final terms and ownership level will be confirmed with the announcement of the final agreement within year-end.
Craig Jasienski, currently CEO and president of EUKOR Car Carriers, will be appointed CEO for the new entity. He takes on, as of today, a joint CEO role for Wallenius Wilhelmsen Logistics and EUKOR Car Carriers.
According to a press release, the parties expect to sign legal agreements and obtain relevant approvals before the end of the year. The proposed transaction is expected to close within in the first quarter of 2017.
