Eimskip buys U.K. temperature controlled logistics company
Icelandic shipping and logistics group HF Eimskipafelag Islands (Eimskip) has completed the 100 percent acquisition of U.K.-based temperature controlled cargo logistics firm Innovate Holdings that it started last year after buying the outstanding 45 percent equity stake for '30.3 million ($59.6 million).
The latest deal will be paid for with new shares in Eimskip with a total of about 83.1 million shares being issued at a price of ISK45 (70.6 cents) per share.
Nottingham-based Innovate has 30 cold stores at 11 locations across the United Kingdom, representing more than 3 million square feet of warehousing. It has a fleet in excess of 1,200 vehicles and temperature-controlled trailers and employs about 2,000 people. Its annual turnover is about '200 million ($393.6 million) and counts major supermarket retailers Tesco, Somerfield, and Sainsbury’s as some of its main customers.
Innovate will continue to be managed by its current management team of Pete Osborne, Stephen Savage and Stephen Dargavel, who will become some of the largest shareholders in Eimskip, holding 4 percent to 5 percent of the total outstanding shares.
Savage, joint chief executive of Innovate, said of the deal: “We decided to merge with the Eimskip business after 12 months of highly successful partnership. Innovate will be developed to be the cornerstone of Eimskip’s global temperature controlled-business. Our customers and staff will benefit from the combined financial strength and expertise of the merged business and we will now be able to offer a total supply chain solution.”
Eimskip buys U.K. temperature controlled logistics company
