Norway Post buys Nor-Cargo

Norway Post has signed an agreement to buy Nor-Cargo Holding ASA for NOK 850 million. The transaction strengthens Norway Post’s core business and makes the company a provider of a full range of logistics services. The acquisition is the largest ever made by Norway Post during its 356 years of existence.

Norway Post takes over Nor Cargo Holding ASA from Det Stavangerske Dampskibsselskab ASA (DSD) and Ofotens og Vesteraalens Dampskibsselskap ASA (OVDS), with effect from 10 May this year. The acquisition does not include Nor-Cargo Shipping. The agreement is conditional upon due diligence and the approval of the Norwegian Competition Authority.

SHARPENS NORWAY POST`S COMPETITIVE EDGE
The acquisition strengthens Norway Post’s position in the logistics market, where competition is fierce especially from international players. Examples of companies actively engaged in the Norwegian market are Deutsche Post/DHL, the Dutch TPG/TNT, Svenske Posten/Tollpost and Linjegods/Schenker BTL. Norway Post’s acquisition of Nor-Cargo secures a competitive Norwegian alternative.

Norway Post aims to be a leading provider of complete logistics services, and has been searching for a long time for opportunities for adding general cargo and bulk cargo to its range of services. Norway Post enjoys a strong position in the parcel market, while Nor-Cargo's forte is bulk cargo and general cargo. The two businesses complement one another, making Norway Post into a total supplier without reducing market competition.

”The acquisition of Nor-Cargo which is part of Norway Post’s aggressive strategy to become a provider of complete logistics services in the Norwegian market, enables Norway Post to meet the strong competition from international players. The activities of the two companies are complementary with little overlap in the market. In addition, economies of scale will enable us to increase profitability,” Norway Post chief executive Kaare Frydenberg says.

”OVDS and DSD have found it proper to sell the shares to Norway Post because the company represents a Norwegian industrial solution. Nor-Cargo Holding ASA alone risks being too small in the increasing competition from international players," says Folke Hermansen, chairman of the Board of Nor-Cargo ASA.

”For Nor-Cargo as a company, and for our customers and employees, having Norway Post as owner is an advantage. Norway Post contributes to strengthening our market position and opportunities of growth, giving us a good basis from which to continue our positive development,” says Nor-Cargo Holding ASA’s chief executive officer, Knut H. Hagen.

IMPORTANT ADDITION
The acquisition of Nor-Cargo is a considerable addition to Norway Post’s activities, contributing to an increase in the company’s revenues of about 20 per cent, from NOK 15.6 billion. In 2003 Nor-Cargo Holding ASA’s operating revenues from its Land and Thermo divisions amounted to NOK 3.2 billion. The total purchase price is NOK 850 million for the shares plus NOK 100 million for financial assets and interest. The acquisition will be paid for in cash.

Nor-Cargo currently is represented in around 90 locations in Norway and has a well developed distribution and agent network, especially along the coast and in the northern part of the country. Its workforce corresponds to 1200 full-time positions in addition to associated carriers working for the company.

THE NOR-CARGO NAME WILL BE KEPT
Nor-Cargo will be maintained as a separate subsidiary of Norway Post and will become part of Norway Post’s Logistics division. Its brand name in the general cargo and bulk cargo activity will be maintained. Senior Vice President Arne Bjørndahl of Norway Post’s Logistics division will become the new chairman of Nor-Cargo's board of directors.

For additional information, please contact:
Norway Post:
– Elisabeth H. Gjølme, Senior Vice President Information, tel: 23 14 80 88, 901 40 449, [email protected]
– Birgitte Lund Nakken,Press Officer, tel. 908 88 284., [email protected]
– Norway Post’s 24-hour media contact, 23 14 80 00

in Nor-Cargo:
– Chief Executive Officer of Nor-Cargo, Knut H. Hagen, tel: 23 31 12 00, 99 21 90 00
– Chairman of the Board of Nor-Cargo: Folke Hermansen, tel: 51 84 56 11, 95 96 60 00
– or www.norcargo.no,