Acquisition of Loksa Shipyard by Estonian Based Consortium from Odense Steel Shipyard (AP Moller Maersk Group)

Redgate Capital advised the prominent Estonian companies AS Frelok (steel trading), Crown Solution OÜ (consulting) and OÜ Stako Diler (metal processing) in their acquisition of 100% share capital of Loksa Shipyard from Odense Steel Shipyard. The acquisition was paid for in cash and financed through senior debt arranged by Redgate Capital and by the consortium’s own capital. The parties agreed to withhold the price of the deal.

The sale of Loksa Shipyard by Odense Steel Yard was driven by its corporate strategy to abandon the building of post-panamax container ships and focus on specialized ships and large steel construction as part of their quest for increased efficiency.

The new owners of the Loksa shipyard intend to continue its main activity – the manufacturing of steel structures for the shipbuilding industry. The consortium also aims to expand its portfolio with new lines such as the energy, oil and gas industry, and the building of infrastructure.

It is the intention of the new owner that Loksa Shipyard will enter into co-operation with the consortium partners and remain a significant player within the steel industry.