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Panalpina acquires Norwegian-based Grieg Logistics

Feb 22, 2011

Today, the Grieg Group announces the sale of its shares in Grieg Logistics AS, a legal entity offering freight forwarding, domestic transportation, warehousing, distribution and customs clearance services to Panalpina.

Subject to the approval of the Norwegian competition authorities, Panalpina acquires 100 percent of Grieg Logistics, a company today encompassing freight forwarding, domestic transportation, warehousing, distribution and customs clearance with operations in fourteen locations. Both parties have chosen not to disclose the purchase price. All of the approximately 100 employees in the Grieg Logistics business units acquired by Panalpina will remain with the company. Grieg Logistics’ current CEO, Rune Birkeland, will support a seamless transition of Grieg Logistics core businesses into Panalpina’s current Norway organization while remaining with the Grieg Group. The acquired entity will be renamed and will trade under “Panalpina Grieg” for an interim period. The Norwegian operations will be managed by Erik Hutter, who has led Panalpina’s Oil and Gas industry vertical for the past nine years.

Grieg Logistics, established in 1969 as a separate business unit within the Grieg Group, is a leading logistics provider to the Norwegian oil and gas, shipping and maritime industries. It has a broad product portfolio including logistics, freight forwarding and project development. In Norway, Grieg Logistics serves the national market with offices throughout the country in accordance with its policy of “going where the customer is”. The acquisition of Grieg Logistics’ core businesses will add approximately NOK 400 million (CHF 67 million) to the Panalpina Group’s annual turnover. Grieg’s maritime services and port operations are not a part of the sale and will continue to operate under the name Grieg Logistics AS after closing.

Grieg Logistics, with its strategic locations throughout Norway, has built up a strong reputation for providing customers with tailor-made services to meet their needs. Panalpina CEO, Monika Ribar, believes that, “Grieg’s commitment to high quality operational excellence combined with its solid foundation in the oil and gas industry in Norway are in close synergy with Panalpina’s leadership in the global oil and gas sector. Welcoming and integrating Grieg Logistics into the Panalpina team is an important step in our growth strategy. Together we have a opportunity to expand our global oil and gas presence and leverage our joint logistics know-how.”

Chair of the Board of Grieg Logistics, Elna-Kathrine Grieg says, “The transport industry is global, and nearly all the tenders are international. We want to offer a complete integrated world-wide network to our customers. When the freight forwarding division of our business is now sold to a company that has a similarly strong position in the same markets outside Norway, we expect that also the Norwegian activity will be strengthened. Panalpina is a solid company with long-term perspectives, and we are therefore comfortable with selling to them. Yet it must be said that on the basis of our long history, and the good relations with our staff and customers, the decision to sell has been difficult to reach”. Elna-Kathrine Grieg emphasizes that “the maritime services and port operations will continue under the name Grieg Logistics AS with all the remaining 100 employees and will be developed further on the basis of existing business. We clearly have ambitions for growth in this area as a natural part of the Grieg Group maritime profile.”

The Grieg Group

The Grieg Group is a privately owned line of companies which operates globally within a variety of business areas: shipping, logistics, ship broking, fish farming, insurance, investments and renewable energy. The Grieg Group has about 1650 employees. The structure as a family owned business, together with the strength of the company culture and the dedicated employees, enables the Grieg Group to always view business in a long-term perspective, and be responsive to changes in the business environment.

About Panalpina

The Panalpina Group is one of the world's leading providers of supply chain solutions. The company combines its core products of Air Freight, Ocean Freight, and Logistics to deliver globally integrated, tailor-made end-to-end solutions. Drawing on in-depth industry know-how and customized IT systems, Panalpina manages the needs of its customers' supply chains, no matter how demanding they might be. Energy Solutions is a specialized service for the energy and capital projects sector. The Panalpina Group operates a global network with some 500 offices in more than 75 countries, and it works with partner companies in a further 90 countries. Panalpina employs 15,000 people worldwide who deliver a comprehensive service to the highest quality standards – wherever and whenever.