Eimskip acquires a cold storage operation and a forwarding company in Newfoundland and Labrador

Thursday, February 26, 2015
Eimskip has acquired the cold storage operation of St. Anthony Cold Storage Ltd. in Newfoundland and Labrador, Canada. The main services of St. Anthony Coldstore are discharging of fishing vessels, storage, and transportation of seafood. Eimskip has been calling St. Anthony since 2005 and with this acquisition the company will further strengthen its services and operations in relation to the seafood industry in Newfoundland and as well towards large industrial projects ongoing in the area. This investment has been undertaken in partnership with Harbour Grace Shrimp Company Ltd., which is a seafood company in Newfoundland and Labrador, and is also a partner with Eimskip in Harbour Grace Coldstore Ltd. in Newfoundland and Labrador. Eimskip will, after this acquisition, own two cold storages in Newfoundland and Labrador that will enable the company to offer better services for the seafood industry, with cold storage facilities and services in both northern and southern Newfoundland and Labrador.

Eimskip has also acquired the forwarding company Cargocan Agency Ltd., which is a leading forwarder in Newfoundland and Labrador, located in the Capital City of St. John's. The company was established in 1992 and has been a leading forwarding company for the seafood industry and for dry cargo to and from Newfoundland and Labrador.

In relation to these acquisitions Eimskip will change its organizational structure of Eimskip in Canada. Jeff Simms will continue as the General Manager, responsible for the four main segments of its operation; Liner Services, Forwarding, Coldstore Operations and Finance & Administration. Jeff Simms will be responsible for the Liner Service, the servicing of the liner vessels. The former owner of Cargocan, Jim Heale, will be responsible for the Forwarding, having many years of experience in both reefer and dry forwarding. Jim Gibbons will be responsible for the Coldstore Operations. Jim has been the General Manager of St. Anthony Coldstore since it was established in 2004. Jason White will be responsible for all Finance & Administration of Eimskip Canada.

Eimskip announced a few weeks ago the changes in its liner system with direct and increased frequency between Europe and North America, without transhipment in Iceland. In conjunction with this increase in services the Port of Halifax, Nova Scotia, and the container terminal, Halterm, have entered into cooperation to further increase the transportation services between Canada and the US.

The total estimated annual turnover of these investments is EUR 6 million with estimated EBITDA ratio of 12.5%.