Eitzen Avanti is buying a 13-ship Danish LPG carrier venture — B-Gas — from Bergshav Shipholding as some of the vessels come full circle and return to their original owner.
The two companies announced that Eitzen has acquired B-Gas A/S, B-Gas NSG, B-Gas Pelagic and their subsidiaries.
B-Gas, which was previously owned by Camillo Eitzen & Co, owns and operates 10 small pressurised and semi-refrigerated LPG vessels operating in the north-west European market.
The company, which is headquartered in Hellerup, Denmark, also controls three LPG carriers — two under commercial management and one a time-charter — that are also included under the deal.
B-Gas was formed in 2011 after Norway’s Bergshav Management, Lorentzens Skibs and a group of other Norwegian shipping investors fronted by Pareto World Wide Shipping bought Eitzen Gas and its fleet.
Eitzen has been in growth mode.
In May, the company’s Christiania Shipping ordered its largest ships to date, contracting two 13,000-dwt stainless steel chemical carriers in Japan.
Eitzen executive chairman Axel Eitzen said: “Acquiring B-Gas is another big step in Eitzen’s ambition to become a leading owner and operator of liquefied gas carriers, and we are very pleased that we have now secured a strong foothold in the coaster gas market.
“We are very positive about the outlook for the LPG and petrochemical business in north-west Europe, and we see synergies between B-Gas and our chemical company, Christiania Shipping, which operate with the same size of vessels in the same geographical markets and with the same clients.”
Bergshav executive chairman Atle Bergshaven said: “With the strong market in mind, the timing of the sale of B-Gas makes a lot of sense for us.
He declared Eitzen as “the right buyer” to bring B-Gas to the next level.
B-Gas chief executive Andrew McPhail said that the company’s new owner brings “strong expertise and shipping knowledge, and we very much look forward to the future cooperation”.
“This will furthermore provide a solid platform on which we can continue to grow our businesses in the LPG and petchem coaster market, where we see strong potential for consolidation and growth.”
The Norwegian tycoon told TradeWinds’ sister publication Dagens Naeringsliv in June that he prefers less risky investments at his age.
“There is actually no such thing as low risk in shipping,” he said. “We are pulling down the exposure to shipping to avoid a worst-case scenario with large losses.”
On Wednesday, he said his fleet was in good hands with the Eitzen Avanti, which in addition to Axel Eitzen as chairman, counts his son Fridtjof as chief executive.
The two hold the same posts at Christiania Shipping, which is 70% controlled by Axel Eitzen.
Eitzen Avanti is primarily controlled by the 69-year-old Norwegian, with other family members owning smaller stakes.
