Odfjell enters into tank terminal partnership

Private equity firm to acquire a minority stake in Odfjell's storage terminals in Rotterdam and Houston.



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Updated on 19 Aug 2011 15:58 GMT

Odfjell has announced that it has signed definitive agreements for a strategic partnership with Lindsay Goldberg LLC, a US-based private equity firm, for the company to acquire a minority stake in Odfjell's terminals in the Netherlands and the United States.

Through the transaction, Lindsay Goldberg will acquire a 49 percent interest in each of Odfjell's tank terminals in Rotterdam [pictured] and Houston as well as in the greenfield project in Charleston, South Carolina. Odfjell will retain the remaining 51 percent ownership stake. The current management teams at the respective terminals will remain in place and will be responsible for the day-to-day business, Odfjell said.

Commenting on the news, Odfjell stated: "The partnership enhances our platform for organic and strategic investments and expansions in the tank terminal business in Europe and North America. We believe there are attractive expansion opportunities in the tank terminal sector and consider Lindsay Goldberg as a reliable long-term partner with a shared strategic view and ambition."

“We are pleased to announce that we are now formally partners with Lindsay Goldberg. We look forward to working with them to pursue growth within the tank terminal market and to create value for our shareholders” said Jan A. Hammer, President and CEO of Odfjell.

Odfjell will receive a total cash consideration of USD 247 million in connection with the transaction, and the parties will invest a total of EUR 25 million of new equity to facilitate planned upgrades and capacity expansion of the Rotterdam terminal.

The transaction is subject to clearance from Norwegian Competition authorities and is expected to close by the end of September.

The total transaction includes storage capacity of refined oil products and chemicals in the amount of approximately 2 million cubic metres and a total of 465 employees.

DnB NOR Markets has acted as financial advisor to Odfjell in connection with the agreed deal.

Image: Odfjell's storage terminal in Rotterdam