NORWEGIAN maritime services provider Eitzen Maritime Services has bought Dubai-based Seven Seas Ship chandlers for US$115m, on a debt free basis. The acquisition doubles EMS's annual sales in ship supply .
An EMS statement says: “The acquisition brings together two of the world's largest ship supply organizations and creates the definite world leader, with an unprecedented global offering. The move is also expected to boost profits in EMS' ship supply division.”
EMS CEO Annette Malm Justad says: “EMS became an industry leader in ship supply following our acquisition of Spanish Provimar last year. This time around we acquire an outstanding company and the market leader in one of the world's most dynamic and fast growing shipping regions. We are well underway in implementing our communicated strategy and developing a truly global footprint," Seven Seas Shipchandlers is headquartered in Dubai with operations throughout the United Arab Emirates as well as in Bahrain, Oman, Qatar, Kuwait and Djibouti. The merchant fleet and naval vessels are the company's most important customer segments. The acquisition includes Seven Seas' highly efficient logistical centre and warehouse, strategically located in Dubai. Seven Seas' sales last year were US$192.5m with a 7.7 per cent EBITDA margin. In the first quarter of 2008 the company had sales of US$52.5m and an EBITDA margin of 8.6%. The company's margins are well above the industry average, according to EMS. The transaction is expected to be completed by the end of third quarter 2008 and the combined company will cover more than 60 ports worldwide and serve more than 8,000 ships every year.
