Avion Group’s Eimskip buys 50% stake in Kursiu Linija
Iceland’s Eimskip, a subsidiary of the rapidly expanding Avion Group, has beaten off competition to acquire a 50 percent equity stake in Lithuania-based European short-sea container shipping line Kursiu Linija.
The undisclosed purchase price will be financed by Eimskip’s equity, Avion said.
In April, MacAndrews, a United Kingdom-based short-sea carrier owned by French carrier CMA CGM, confirmed that it was discussing possible linkups with Kursiu Linija. Under terms of the deal with Eimskip, Kursiu Linija will retain its existing management, headed by managing director Arijus Ramonas.
“The future vision and policy of Eimskip coincides with Kursiu Linija’s vision and policy. Many big shipping lines in the North Atlantic have shown interest in cooperating with Kursiu Linija. During the discussions for the last few months, we found that Eimskip was the optimum choice,” Ramonas said.
Established in 1995, Kursiu Linija operates six vessels ranging from 300 to 650 TEUs calling on three services: between the Baltic States and Poland and the United Kingdom and Benelux; between Germany and Kaliningrad; and between Germany and Lithuania and Sweden.
Kursiu Linija moved 140,000 TEUs last year and posted revenue of 46 million euros ($59.2 million), a figure expected to rise to about 60 million euros ($77.2 million) for 2006. Customers include Masterfood, Philip Morris, Procter & Gamble, Gillette and IKEA.
“The acquisition is a part of Eimskip’s strategy to become a transport market leader offering total services in the North Atlantic through a network linking key ports in Europe,” Avion said in a statement.
“Eimskip’s investment in Kursiu Linija is in accordance with the company’s policy of building a strong and versatile transportation and logistics service in Europe and strengthening Eimskip’s intra-Europe sailing network,” said Baldur Guonason, Eimskip’s chief executive officer.