EMS acquires Provimar for €31m

John Gallagher

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Eitzen Maritime Services (EMS) has confirmed the purchase of Arbodans XXI, the holding company of the Barcelona based-ships supplier and duty-free shop operator Provimar

Norwegian shipping services company Eitzen Maritime Services (EMS) has confirmed the acquisition of Arbodans XXI , the holding company of the Barcelona based ships supplier and duty-free shop operator Provimar, following final board approval and the completion of the due diligence process announced mid May.

Provimar is currently owned by the British investment fund 3i and Provimar senior management including Juan Sunet and Werner Muhlemann. Both Sunet and Muhlemann have agreed to remain with the company after the transaction is completed.

The Provimar Group had net sales of €92m last year and is Spain's largest ship supply company, with a presence in 27 ports in Spain, Portugal, Gibraltar, Morocco, Uruguay and the US.

The acquisition places EMS among the largest global ship supply companies. The merger of the two companies is expected to create considerable synergies with the Provimar focus on the Mediterranean and the Americas combining well with EMS strength in Northern Europe and Asia.

The acquisition of the Provimar Group will increase EMS' total sales in the ship supply business area by more than 150% (based on 2006 sales). The Provimar Group enjoys attractive gross margin and EBITDA levels compared to competitors in the ship supply industry and benefits from modern infrastructure including a highly efficient logistics centre completed earlier this year.

Provimar is to be acquired at an agreed Enterprise Value of  €31m ($42).