Icelandic shipping company Eimskip pushes [ds_preview]forward with another step to pursue inorganic growth – by taking over the majority of the reefer forwarding company Mareco.
The acquisition of 80% of the Antwerp-based company is estimated to have a value of 16.6 mill. €, »subject to the company’s financial results for the year 2016, and is financed with cash and debt«, Eimskip announced. Mareco will become a part of the group as from the beginning of this year.
The forwarder was founded in 2002 and its headquarters are located in Antwerp, Belgium. The current management team will continue to own a 20% share in the company and will manage its operations. Mareco employs 26 people in two locations, 22 in Antwerp and four in Sao Paulo, Brazil.
According to the statement of Eimskip, Mareco focuses on reefer logistics services, especially export to West, Central and South Africa from all over the world. Main commodities are seafood, chicken, pork and beef. The company’s annual revenue amounts to approximately 60 mill. €, with EBITDA ratio of 5-6% and it transports about 32,000 TEU per year.
Islandsbanki backs growth strategy of Eimskip
The shipping company announced that it has agreed with Íslandsbanki for a revolving credit facility with an agreed term of 18 months in the amount of 47 mill. €. Due to the acquisition of Mareco, Eimskip has drawn 7 mill. on the credit facility.
We are pleased to have Mareco as a part of the Eimskip group
and the company will further strengthen our reefer logistics services with a
wider scope of Eimskip’s services, both in terms of new commodities and
new geographical areas.Gylfi Sigfussion, CEO and President of Eimskip
With the planned increase in the variety of frozen commodities, it is planned that Mareco’s network will support the group to capitalize on new opportunities in new regions and supports further development in Eimskip’s reefer logistics services. Up to now, Eimskip runs a network of 60 offices in 20 countries and operates 20 vessels. Approximately half of the company’s revenue comes from operations outside Iceland.
The takeover of Mareco marks another step of Eimskip to expand its business. Last year, which saw strong financial results, the company already took over the Norwegian Nor Lines and the Dutch forwarder Extraco. It was only on Friday, when it was announced that a newbuilding order for container vessels is supposed to be finalized in the next days.
