WWL joint venture partners streamline ownership structure

The Wilhelmsen and Wallenius companies that have jointly owned Wallenius Wilhelmsen Logistics since 1999 created a new ownership structure designed to enhance management efficiency and enable better cooperation between their affiliates.

   The Wilhelmsen and Wallenius companies that have jointly owned Wallenius Wilhelmsen Logistics since 1999, which operates a major fleet of ocean cargo vessels for vehicles and an auto terminal business, announced the creation of a new ownership structure designed to enhance management efficiency and enable better cooperation between their affiliates.
   WWL is 50 percent owned by Wilh. Wilhelmsen of Norway and 50 percent by Wallenius Lines of Sweden. They jointly own 80 percent of EUKOR Car Carriers and 100 percent of American Roll-on Roll-off Carrier.
   According to their letter of intent, the ownership of WWL, EUKOR and American Roll-on Roll-off will be combined in one entity to be named Wallenius Wilhelmsen Logistics ASA and listed on the Oslo Stock Exchange. In addition the parties have agreed to merge the ownership of the majority of their vessels and other assets and liabilities into the new entity.
   The transaction is expected to be completed in the first quarter of 2017.
   “The markets in which the jointly owned entities operate are going through rapid change and require a more agile and efficient business model. In addition to establishing a common owner and governance structure, the proposed merger is expected to enable synergies between $50 million to $100 million by combining the assets and harvesting economies of scale, including more optimal tonnage planning, and administrative, commercial and operational efficiencies between the entities,”Jan Eyvin Wang, president and chief executive officer of Wilh. Wilhelmsen ASA, said in a statement.
   The two lines will have equal ownership in the new entity of about 40 percent.
   Craig Jasienski, currently president and chief executive officer of EUKOR Car Carriers, will be appointed CEO for the new entity. To facilitate the transition process and in order to realize operational and commercial synergies, he will jointly lead Wallenius Wilhelmsen Logistics and EUKOR Car Carriers as of Monday.
   Christopher J. Connor, president and chief executive officer of Wallenius Wilhelmsen Logistics since 2013, will lead a strategic review targeting accelerated growth of the land-based logistics business.
   Changing market dynamics and pressures on margins forced a fundamental change in how the companies managed their joint ventures, especially within the shipping sector, officials said.