Odfjell, Lindsay Goldberg to expand JV to global terminals

19 December 2012 09:31  [Source: ICIS news]

SINGAPORE (ICIS)--Odfjell and US equity firm Lindsay Goldberg plans to expand their existing joint venture to include all of the Norwegian firm’s global tank terminals business, the Scandinavian shipping company said on Wednesday.

Under the proposed transaction, the US firm will acquire a 49% interest in Odfjell Terminals BV (OTBV), the holding company for substantially all of Odfjell's tank terminals activities, and then subsequently all remaining tank terminals activities outside of OTBV will be included in OTBV, Odfjell said.

“It is further intended that the assets in the existing joint venture will ultimately be fully owned by OTBV,” it said.

The existing joint venture covers Odfjell’s terminals at Rotterdam in the Netherlands and at Houston, Texas in the US.

Lindsay Goldberg is expected to shell out about $226m in cash for the expansion of the joint venture, subject to customary closing balance sheet adjustment.

The transaction values Odfjell's tank terminals business outside of the existing joint venture at about 10 times of its estimated 2012 earnings before interest, tax, depreciation and amortisation (EBITDA), the Norwegian shipping firm said.

“The proposed transaction will significantly increase the capitalization of OTBV and will enable us to jointly execute on an ambitious and accelerated growth strategy within tank terminal business,” Odfjell said.

The company is currently developing a new tank terminal facility in Charleston, South Carolina and is expanding its existing facility in Houston, Texas.

It was also tapped to evaluate the development of a new bulk liquids terminal facility in Le Havre, France.

In China, the company is working on a number of projects with a total new tank storage capacity of 2m cubic meters, it said.

Potential new projects in India, the Middle East, Africa and South America are currently being evaluated, Odfjell said.

By: Pearl Bantillo
+65 6780 4359

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