Avion’s subsidiary company Eimskip, is pleased to announce the acquisition of 55% equity stake in Innovate Holdings, which specialises in storage and distribution of temperature controlled cargo. Eimskip formerly planned to acquire a 50% stake in Innovate Holdings: by acquiring a controlling interest of 55%, the company will be consolidated into the financial statements of Avion and Eimskip. The purchase price, which is undisclosed at the request of the vendor, will be financed by a combination of Eimskip equity and debt.

This acquisition is part of Eimskip’s strategy to be a leading logistics provider globally. With the purchase of a share in the Dutch coldstorage company Daalimpex and now the acquisition of a majority stake in Innovate, Eimskip has become a leading European coldstore company.

Innovate is one of the largest temperature controlled cargo logistics businesses in the UK with 25 cold stores at 11 locations throughout the UK providing storage capacity of 370 thousand tonnes. Innovate is forecasting turnover of approximately 15 billion ISK (c. £120 million) for the financial year 2006/07, over double the previous year as a result of acquiring a similar business, in early March 2006. The EBITA margin for 2006/07 is expected to be 5% - 6%. Innovate will form part of the financial statements of Eimskip with effect from 1 May 2006, the commencement of the third quarter in Eimskip’s financial year ending 31 October.

Innovate has 635 trucks and temperature controlled trailers servicing the 370 thousand tonne capacity of the company. Eimskip’s controlled temperature storage in Iceland is seven thousand tonnes.

Innovate will continue under its existing management which employs 1400 people.
Source: Press release

Tags See All Tags Add New Tag...

Please Enter New Tags Separated By Comma's
  Or Close

Eimskip  Innovate Holdings  United Kingdom  acquisition