Avion Group moves into shipping with Eimskip acquisition

Avion Group moves into shipping with Eimskip acquisition    Icelandic Avion Group, which has concentrated on passenger and cargo aircraft leasing, has completed the takeover of Reykjavik-based shipping line Eimskip, for a total selling price of ISK23 billion ($355 million).
   Burdaras sold its 94.1 percent share in Eimskip to the Avion Group for ISK21.6 billion ($334 million), of which ISK12.7 billion ($196 million), was paid in cash with the remaining ISK8.9 billion ($138 million) paid for with shares in the Avion Group. The final number of shares will be determined when the Avion Group is listed in the Iceland Stock Exchange by Jan. 31.
   The Avion Group also plans to purchase P/F Tjaldur’s remaining 5.9 percent share in Eimskip.
   “The acquisition of Eimskip is a major leap for the Avion Group,” said Magnus Thorsteinsson, the Avion Group’s executive chairman. “We have worked hard to build and complete our aviation business and the addition of a shipping and logistics business transforms Avion into one of world’s leading air and sea transportation providers,” he added.
   Avion was founded in January through the merger of Air Atlanta Icelandic and Islandsflug. Through a group of subsidiaries, the group leases more than 60 passenger and cargo aircraft long-term and short-term and also provides other aviation-related services at seven overhaul workshops in the United Kingdom and a maintenance center in Ireland. The group also includes Air Atlanta Europe, Avia Technical Services, Excel Airways, and Southair.
   Following the takeover of Eimskip, the Avion Group said it will be the largest transportation company in Iceland with turnover of ISK110 billion ($1.7 billion), 4,400 employees and 80 operating centers around the world.