Hannes Snellman Counsel to Aspo Plc in the Acquisition of AtoB@C Shipping AB
2 August 2018
Aspo Plc, a listed Finland-based conglomerate, has agreed to acquire AtoB@C Shipping AB, a Sweden-based owner and operator of a shipping logistic company, from Anders Nilsson, a Sweden-based seller, for an enterprise value of EUR 30m.
Aspo will finance the transaction from its internal cash reserves. As per the terms, Aspo will pay approximately EUR 4.2m through an issue of Aspo shares, which will have a lock-in period of 2 years and the balance will be paid in cash. The transaction is expected to increase ESL Shipping’s cargo volume from approximately EUR 11m-12m to approximately 16m-17m and its revenue from EUR 80m to approximately EUR 160m. The transaction strengthens ESL Shipping’s position in the category of smaller vessels and improve the operational efficiency as well as the overall profitability of the company. It will also allow ESL Shipping to develop environmentally-friendly and effective transport solutions and help it diversify its risk. The transaction is expected to improve Aspo's earnings per share and result in annual synergies of at least EUR 2m from 2020. Following the acquisition, ESL Shipping will have a total of 50 vessels.
Aspo carried out the transaction through its subsidiary ESL Shipping Ltd. The transaction is subject to the approval of the Finnish competition authority and is expected to be completed in the third quarter of 2018.