A part of Watch Media

ShippingWatchSunday29 January 2023

  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
23/06/2014at 15:15

Wrist open to EMS Seven Seas' commercial unit

Supreme Group's acquisition of Norwegian EMS Seven Seas opens the door to a consolidation of the commercial part of the ship supply market. Danish Wrist Ship Supply is always open to a solid offer, management tells ShippingWatch.
"We are continuously looking at potential acquisitions," says CEO Robert Kledal. | Photo: Wrist
BY TOMAS KRISTIANSEN

Following American logistics and supply company Supreme Group's purchase of more than 90 percent of the shares in Norwegian EMS Seven Seas, the potential for a consolidation of the civilian part of the ship supply market is back in play.

The Americans' somewhat surprising offer and deal with the five major shareholders behind EMS Seven Seas has been estimated by several market observers to be based on Supreme Group's strength in the military leg of the business. EMS Seven Seas and Supreme Group have worked together as key suppliers of field rations to the US forces in Afghanistan, and market sources beleive that the main purpose for the Americans has been to get their hands on the Dubai office, which has also been the most lucrative part of EMS Seven Seas.

There is no information yet if Supreme Group plans to just integrate the military part of EMS Seven Seas and get rid of the some 20 civilian offices located in ports around the world. But should this move lead to an offer on the commercial business, major Danish competitor Wrist Ship Supply would not reject a meeting, CEO Robert Kledal tells ShippingWatch.

Consolidating all the time

"We're a company that's constantly consolidating and we're continuously looking at potential acquisitions. So, if we get an offer we're going to look at it, but of course it depends on the price and a subsequent due diligence. Though there's nothing to indicate that this business should be any different from so many of the other companies we're looking at. But it goes without saying that such an initiative must come from Supreme," says Kledal.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

As it looks now, Supreme Group seems intent on strengthening its business in an effort to become a global leader, thus pushing Wrist Ship Supply aside as the world's biggest company in delivering supplies to ships and the offshore industry.

"We are prepared to make investments to ensure EMS Seven Seas becomes the global leader in commercial ship supply within three years, and we look forward to working closely with their teams around the world to make this happen, merging our organizations to leverage operational synergies to their fullest potential," says Supreme Group CEO Theo Reichert.

Well-consolidated competitor

And Rober Kledal does point out here, at first, that the acquisition brings a new and well-financed competitor onto the field.

"We respect Supreme and what they've achieved. Something needed to happen in this business, so if they hadn't acquired EMS Seven Seas there would have been some other solution. This doesn't mean anything in terms of our investment plans, which will continue as planned. We want to be biggest from 2017," he says.

However, customers in shipping and offshore should not expect lower prices, as the market is too fragmented with several thousand local players operating in ports around the world.

"I don't see this specific transaction resulting in additional price pressure in an already fragmented low-margin industry," as Robert Kledal says.

EMS Seven Seas and Wrist Ship Supply both have a share of around six or seven percent of the global market.

Supreme: EMS Seven Seas to dominate globally

EMS fears Supreme Group's acquisition plans

Supreme looking at EMS Seven Seas' crown jewel

Supreme Group to acquire EMS Seven Seas 

Related articles:

  • Supreme: EMS Seven Seas to dominate globally

    For subscribers

  • EMS fears Supreme Group's acquisition plans

  • Photo: Wrist Ship Supply

    Supreme looking at EMS Seven Seas' crown jewel

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Foto: Höegh Autoliners
Carriers

Car carriers have rarely seen such profits: "We are probably at an all-time high"

After a difficult time during the pandemic, 2022 has exceeded all expectations for car carriers, says chief exec of Höegh Autoliners. Low capacity and electric cars out of China are main factors in elevating prices.
  • Norwegian carrier lands another large gas deal with Germany
  • Höegh Autoliners joins climate coalition

For subscribers

Foto: Markus Scholz/AP/Ritzau Scanpix
Container

Maersk rebrands Hamburg Süd and several other well-known subsidiaries

For subscribers

Foto: Ints Kalnins/Reuters/Ritzau Scanpix/REUTERS / X02120
Tanker

Fredriksen now owns nearly as many Euronav shares as the Saverys family

For subscribers

”Blue Water wants to grow – but it will be with a focus on profitable growth, and we will hold on to our strong values, unique customer focus and high level of satisfaction among both customers and personnel,” states Kurt Skov, founder and departing chair at Blue Water Shipping. | Foto: Carsten Andreasen/Ritzau Scanpix
Logistics

Blue Water founder promises future "focus on profitable growth"

For subscribers

Foto: Tatiana Meel/Reuters/Ritzau Scanpix
Regulation

EU considers capping Russian fuel prices at USD 100 a barrel

For subscribers

Foto: Statoil/AP/Ritzau Scanpix
Offshore

Borr Drilling raises USD 400m to pay off debt

For subscribers

Latest news

  • Blue Water founder promises future "focus on profitable growth" – 27 Jan
  • Borr Drilling raises USD 400m to pay off debt – 27 Jan
  • Income for ice class tankers has surged by 1,644 percent following sanctions – 27 Jan
  • Floating power station to provide energy for one million Ukrainians – 27 Jan
  • Maersk rebrands Hamburg Süd and several other well-known subsidiaries – 27 Jan
  • Car carriers have rarely seen such profits: "We are probably at an all-time high" – 27 Jan
  • Fredriksen now owns nearly as many Euronav shares as the Saverys family – 27 Jan
  • EU considers capping Russian fuel prices at USD 100 a barrel – 27 Jan
  • New partnership to investigate potential human rights abuse at sea – 27 Jan
  • Singaporean competition authorities to probe DSME sale – 27 Jan
See all

Jobs

  • Senior Lead, Human Sustainability at Sea

  • Financial Controller for International Shipping Company

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Foundation Package Manager - Offshore wind industry

  • Junior Finance Business Partner - offshore wind industry

  • Chartering Manager for Lauritzen Bulkers A/S

Jobs

  • Senior Lead, Human Sustainability at Sea

  • Financial Controller for International Shipping Company

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Foundation Package Manager - Offshore wind industry

  • Junior Finance Business Partner - offshore wind industry

  • Chartering Manager for Lauritzen Bulkers A/S

See all jobs

Colophon

ShippingWatch
Search

Sections

  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
  • Sitemap
  • RSS feeds

Editor

Tomas Kristiansen

tk@shippingwatch.dk

Tel.: +45 3330 8360

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7445

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7445

Jobs

Subscription

Try ShippingWatch or get an offer for a subscription meeting the exact needs of you or your company.

shippingwatch@infowatch.dk

Tel.: +45 7077 7445

Learn more about subscriptions here

Address

ShippingWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8360

Guidelines

  • Privacy Policy

Copyright © ShippingWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
ShippingWatch

Google ChromeMozilla FirefoxMicrosoft Edge