Odfjell has signed definitive agreements for a strategic partnership with Lindsay Goldberg LLC, a US-based private equity firm. The partnership enhances our platform for organic and strategic investments and expansions in the tank terminal business in Europe and North America.
Odfjell believes there are attractive expansion opportunities in the tank terminal sector and considers Lindsay Goldberg as a reliable long-term partner with a shared strategic view and ambition.
Through the transaction, Lindsay Goldberg will acquire a 49% interest in each of Odfjell's tank terminals in Rotterdam, Netherlands and Houston, Texas, as well as in the greenfield project in Charleston, South Carolina. Odfjell will retain the remaining 51% ownership stake. The current management teams at the respective terminals will remain in place and will be responsible for the day-to-day business.
Odfjell will receive total cash consideration of US $247 million in connection with the transaction, and the parties will invest a total of EUR 25 million of new equity to facilitate planned upgrades and capacity expansion of the Rotterdam terminal.
The transaction is subject to clearance from Norwegian Competition authorities and is expected to close by end of September.
"We are pleased to announce that we are now formally partners with Lindsay Goldberg. We look forward to working with them to pursue growth within the tank terminal market and to create value for our shareholders," said Jan A. Hammer, President and CEO of Odfjell.
Lindsay Goldberg acquires $247MM stake in Odfjell's tank terminal business in Europe, US