Norwegian shipmanager OSM Maritime is taking over the managed fleet of Kristian Gerhard Jebsen Skipsrederi (KGJS), one of Norway's largest private shipowners.
Thirty-seven ships are included in the deal, which is all the vessels technically managed by the Hans Peter Jebsen-controlled group.
KGJS Fleet Management's operations in Bergen, Singapore and Manila will become part of OSM on 3 August, following a deal signed between the parties on Wednesday.
All 30 staff employed at KGJS's Bergen headquarters will be transferred to the newly established OSM Bergen, which will be headed by Ole-Johan Haahjem, who is currently chief executive of KGJS Fleet Management.
Around 1,300 KGJS seafarers will also be transferred in the move as well as around 60 KGJS shore staff in Manila and Singapore.
KGJS approached OSM Management's managing director in Norway, Geir Sekkesæter, with the proposition "earlier this year", Tommy Olofsen, executive chair of Arendal-based OSM, told TradeWinds.
The transfer of staff from KGJS to OSM, he said, will allow that shipmanagement expertise and competence to remain in Bergen, which is "very positive".
"Bergen is one of the shipping capitals globally, I would say," said Olofsen.
"A lot of vessels are being owned, operated and managed from Bergen. There's a very strong cluster within Bergen, which OSM is looking forward to being part of."
Fleet picture
Olofsen confirmed to TradeWinds that the deal covers the entirety of KGJS's managed fleet, which comprises small cement carriers, as well as handysize bulkers, two combination carriers and the 15-ship fleet of SKS Tankers.
Most of the current KGJS-managed fleet is owned by companies that, like SKS Tankers, are part of the KGJS group.
But the managed fleet also includes three newcastlemax bulkers owned by compatriot owner 2020 Bulkers.
With the addition of the 37 new vessels, OSM will now be responsible for technical and crew management of 600 ships worldwide.
Technical management for over 100 vessels will also be handled from Norway.
Reasons for the move
Geir Mjelde, chief executive of KGJS, said the shift to OSM would help make the shipowner better positioned for the future.
“The shipping industry faces major challenges ahead in terms of technology and environmental regulations. Tackling these challenges demands scale and depth of competence," Mjelde said.
"With the expertise built up in KGJS over many years and partnering with a reputable ship management company such as OSM, we ensure that KGJS is in the best possible position to deal with future requirements.”
Olofsen said his company is "both proud and respectful of the trust KGJS is showing us".
"The commercial rationale for this agreement is not short-term cost synergies," he told TradeWinds.
"For OSM this is a strategic move, first since we are teaming up with one of the most respectable shipowners in Norway, and because we see great potential in becoming part of the maritime cluster in Bergen."
OSM said the deal confirms its position as "Norway's biggest player in shipmanagement", and it strengthens the company's position in the dry bulk and tanker segments.
Arendal-based OSM was founded by Bjorn Tore Larsen, who last year stepped away from the day-to-day running of the company, putting Olofsen in charge as chairman.
In 2018, Oaktree Capital Management took a 49% stake in OSM Maritime, with Larsen retaining his majority stake.
Larsen is also chairman of Oslo-listed ADS Crude Carriers with a fleet of three VLCCs.
OSM was established in 1989 and has 15,000 employees from 50 nationalities.
The outfit offers services in technical management, crew management and newbuilding management.
In addition to its base in Norway, OSM lists offices in the Philippines, Singapore, Cyprus, Finland, Russia, Poland, Brazil, Croatia, the UK, China, Ukraine, Latvia, Denmark, Ghana, Angola, Congo, India, Sweden and the US.
Trond Lillestolen and Eric Martin contributed to this story.
