Danish shipping company Norden is set to acquire Thorco Projects, a fellow Danish company that has focused on charters and services in recent years. The move represents a further expansion for Norden in the general cargo segment and will allow it to expand its breakbulk operations. The acquisition also means the company will have access to new customers, including wind energy, steels and break bulk.
The two companies have similar business models and there are numerous commercial synergies between the two, including an overlap in Thorco Projects’ fronthaul routes and NORDEN’s backhaul routes. Thorco Projects operates an asset-light business model, chartering a fleet of predominantly 30 to 40 Handysize vessels and tween deckers, while Norden is a significant operator in the same field. The fusion of the two companies will complement Norden’s asset-light approach and it will contribute positively to margins in the company’s Freight Services & Trading business unit.
Jan Rindbo, CEO of Norden, is optimistic about the acquisition’s prospects, affirming that Norden has the tonnage and business tools available to grow the Thorco Projects business under the Norden brand. Earlier in the year, Norden said its 2023-2025 strategy was to capitalize on the most attractive opportunities in the market, which saw the acquisition of four Capesize vessels to improve its availability to dry-segment customers. With the acquisitions, Norden stated that it will now offer a full-service approach, allowing support for customers across all dry segments with cargo loads between 5,000-200,000 tonnes.
The terms of the Thorco Projects acquisition were not reported and the closing is expected to be in Q3, 2023, subject to regulatory clearance.
Tags: Norden, breakbulk, acquire, acquisition, Thorco,