Eimskipafélag Íslands hf. - Company Announcement

Supplement: Eimskip signs an agreement to acquire the shipping and logistics company Nor Lines

With reference to a press release from Eimskip dated 2 November, the company
emphasizes the following: 

Eimskip has entered into an agreement to acquire the Norwegian shipping and
logistics company Nor Lines. Nor Lines is a strategic fit in Eimskip’s core
market and the overall transaction is asset-light. The final purchase price is
subject to adjustments based upon the company’s financial statements for the
year 2016. The approximate purchase price is EUR 15 million and can decrease or
increase based on the financial performance of Nor Lines for the year 2016. 

As disclosed in the previous press release, the operation of Nor Lines has been
challenging in recent years. Eimskip sees opportunities in restructuring the
operation and has, as a part of the acquisition, ensured favorable agreements
on the operation of Nor Lines’ sailing system. Further synergy effects will be
implemented by merging with Eimskip’s sailing system in Norway. Eimskip’s goal
is to achieve 6-8% EBITDA margin as in other asset-light operations of the
company. 

As stated in the previous release, Eimskip will in addition to the above
acquire one of the vessels currently operated by Nor Lines (the Nordkinn) for a
purchase price of EUR 8 million. The vessel and other two of the four chartered
vessels (the Silver River and Silver Lake) were built by Eimskip Norway and
operated by the company until 2009. 

Subject to the approval of the Norwegian Competition Authority it is
anticipated that the transactions will close during the first quarter 2017.