Sailors Society25th Coaltrans AsiaTelestackMarketing in Maritime 20195th Biennial LNG BunkeringVigan Engineering S.A
  • Telestack
  • TOC Events
  • Marketing in Maritime 2019
  • Marine Fuels 360 China
  • Cimbria Bulk Equipment A/S
  • Vigan Engineering S.A

ESL Shipping acquires AtoB@C to broaden offering and customer base

ESL Shipping acquires AtoB@C to broaden offering and customer base

(Posted on 04/07/18)

Leading carrier of dry bulk cargoes in the Baltic, Aspo Group owned ESL Shipping Ltd, is to acquire all the outstanding shares of AtoB@C Shipping AB and AtoB@C Holding AB (AtoB@C) that offer shipping services. The enterprise value is EUR 30 million. The final purchase price will be mainly financed by Aspo's existing financing reserves, and approximately EUR 4.2 million will be covered by new shares issued by Aspo Plc. The transaction will require the competition authority's approval in Finland to be completed. It is estimated that the transaction will be completed in the third quarter of 2018. The Board of Directors of Aspo Plc will decide on the issue of new shares when the deal is completed based on the authorization given to it by the Shareholders' Meeting deviating from the shareholders' pre-emptive right. The number of new shares to be issued will be determined five business days before the closing of the transaction on the basis of 25 days' volume weighted average trading price of Aspo shares on Nasdaq Helsinki Ltd. The shares have a restriction of two years on the right of disposal.

AtoB@C is engaged in the shipping business with 30 vessels in size of 4,000-5,000 tonnes. AtoB@C owns six dry cargo vessels in full, and it has a share of 49% of two vessels. The other 22 vessels are time-chartered. In 2017, AtoB@C posted net sales of EUR 79.3 million and an operating profit of EUR 3.2 million. The cargo AtoB@C carries mainly consists of raw materials and products of the forest industry, products of the steel industry, fertilizers, recyclable materials, biofuels and minerals. The head office of AtoB@C is in Ystad.

With the transaction, the net sales of ESL Shipping will increase from EUR 80 million to approximately EUR 160 million using the figures from 2017. In addition, the cargo volume carried will increase from approximately 11-12 million tonnes to approximately 16-17 million tonnes.

The transaction will further reinforce the position of ESL Shipping in the category for smaller vessels, and its business will strengthen considerably with new customers and new product flows. If the transaction is completed, ESL Shipping will have a total of 50 vessels including new ships with a deadweight capacity of 468,000 tonnes compared to the previous 331,000 tonnes. The company owns 19 vessels in full, it has a minority share in two vessels, one vessel is leased and 28 vessels are time-chartered.

"Aspo's strategy is to develop leading companies in its field. The acquisition will shift ESL Shipping to a new size class and put it in a good position to improve operational efficiency and overall profitability of the shipping company," says Aki Ojanen, CEO of Aspo Plc and Chairman of the Board of Directors of ESL Shipping.

The current ESL Shipping and AtoB@C are both strongly present in the whole Northern European region. The expanded ESL Shipping will be an even more balanced and more diversified shipping company in terms of risks. With the acquisition, ESL Shipping will have even more opportunities to develop environmentally-friendly and effective transport solutions to meet customers' future needs.

"Together we form a strong Nordic shipping company that is customer-driven. It has strong shoulders to build future success determinedly," says Mikki Koskinen, Managing Director of ESL Shipping.

The main owner of AtoB@C, ship-owner Anders Nilsson says: "I am very delighted to have found the best possible home for my shipping company. This is a good starting point."

The deal is expected to improve Aspo's earnings per share already during the present financial period. Targeted annual synergies amount to at least EUR 2 million, and it is estimated that they will be met in full starting from 2020.

When the transaction is completed, ESL Shipping will present its new structure and targets in more detail as part of Aspo Group.

Latest News

Refreshed strategy for Wallem

(Posted on 18/04/19)

Wallem has updated its corporate identity to mark the beginning of a profound shift in its service offering... Read more


Songa Bulk to merge with AGS

(Posted on 18/04/19)

Songa Bulk ASA and Axxis Geo Solutions AS have entered into a joint merger plan, pursuant to which Songa... Read more


ClassNK’s Cyber Security Management System

(Posted on 18/04/19)

Leading Classification Society ClassNK has released its Cyber Security Management System for Ships.As... Read more


Industry supports IMO’s anti-corruption agenda

(Posted on 18/04/19)

The International Maritime Organization (IMO) has agreed to address maritime corruption by including... Read more


Global mobilization for seal repairs

(Posted on 18/04/19)

Hydrex has developed a flexible mobdock repair method that enables the underwater replacement of all... Read more


Singapore still on top

(Posted on 18/04/19)

The Leading Maritime Capitals report for 2019 is has been published, with fresh insight on which maritime... Read more


IRClass continues Asia Pacific growth

(Posted on 18/04/19)

Indian Register of Shipping (IRClass), continues to grow steadily in the Asia Pacific region –... Read more


Shipowner associations’ MoU

(Posted on 08/04/19)

Yesterday in Singapore, the International Chamber of Shipping (ICS), the Asian Shipowners’ Association... Read more


Coldharbour Marine senior appointment

(Posted on 08/04/19)

UK-based Coldharbour Marine, the manufacturer of an in-tank ballast water treatment systems (BWTS) based... Read more


ClassNK provides Sulphur Cap support

(Posted on 08/04/19)

Leading classification society ClassNK has developed “Guidance for onboard use of Compliant Fuel... Read more


Bühler GmbHTBA GroupTMS Awards 2019TOC EventsMULTIMODAL 2019Cleveland Cascades Ltd
  • Port of Belledune
  • 25th Coaltrans Asia
  • Sailors Society
  • 5th Biennial LNG Bunkering

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping