Odfjell SE has reached an agreement with Lindsay Goldberg (LG) to acquire their indirect 24.5% shareholding in Odfjell Terminals Korea (OTK) at a purchase price of USD19 million.

Following the transaction, Odfjell SE will control 50% of OTK’s shareholding alongside the long-term, local JV partner KPIC. OTK generated an annual EBITDA of USD2.2 million and net result of USD 0.7 million in FY2019 (based on 25.5% Odfjell SE shareholding). 

The acquisition will be funded through available proceeds within the Odfjell Terminals structure, and closing is expected to take place within December 2020.

Commenting on the transaction, Kristian Mørch, CEO of Odfjell, said: “We are pleased to have reached an agreement with LG to acquire their stake in OTK. OTK is a high-quality terminal and represents a good fit with our strategy for Odfjell’s terminal division. As such, this is another milestone in completing the restructuring of our terminal portfolio and our strategy to focus on chemical terminals where we can harvest synergies with Odfjell Tankers or have another angle for further value creation by Odfjell. The acquisition will have a positive effect on results, return and cash flow for Odfjell SE, and also ensure a simple and efficient governance structure for OTK.”

The Odfjell Group is one of the leading players in the global market for seaborne transportation and storage of chemicals and other specialty bulk liquids. The Odfjell fleet comprises approximately 80 ships, which trade both globally and regionally. The tank terminal division consists of five tank terminals and is part of a network of another 12 tank terminals partly owned by related parties. The tank terminals are strategically located at selected international shipping hubs. The Odfjell Group’s headquarters are in Bergen, Norway, and the Group has offices in 13 locations around the world. Odfjell employs around 2300 staff and posted annual gross revenue of USD 872 million in 2019. 

For more information, go to Odfjell.com.