Cardiff-based shipping firm sold off its management arm to focus on core business
AN international shipping company has sold off part of its business in a deal which it says will allow it to focus on its core activities.
Family owned Graig Shipping, which is based in Cardiff, has sold its ship management arm Graig Ship Management to Londonbased V.Group for an undisclosed sum.
The deal will allow Londonbased V.Group to enhance its growing ship management capability in Asia as well as benefiting from Graig Ship Management’s strong relationships with Western owners, banks and institutional investors seeking highest quality, boutique and risk managed services.
Graig Shipping will now focus on core activities including consultancy and supervising the building of new ships in Chinese, Vietnamese and Indian yards.
Graig Ship Management will continue to operate independently within the V.Group portfolio, supported by V.Group’s global presence and broad service offering.
Hugh Williams, chief executive of Graig Shipping, said: “This is an outstanding opportunity for Graig Ship Management to continue to grow within V.Group’s portfolio and to build on the reputation it has developed as a leading dry cargo services provider.
“Operating within the V.Group portfolio, we will be supported by the global footprint, the scale and investment needed to continue to provide an enhanced service to our customers while retaining our core values.
“Graig Ship Management’s fleets already benefit from V. Group’s class-leading vessel management system, Shipsure, and there is good alignment on values and culture between the two companies, which will ensure continuity of service for our existing and new clients.
“The transaction also offers significant long-term potential for Graig Shipping to cooperate in a mutually beneficial partnership under the new ownership and strategy being formulated at V. Group and Advent International.”
Graig Shipping has developed a reputation for high quality new build supervision and ship management of dry bulk vessels.
This reputation, which has its roots as part of Graig Shipping’s 100 year history and is supported by a global maritime workforce, has grown steadily over the past 25 years despite market challenges.
Through this transaction, V. Group and Graig Shipping will form a close, complementary partnership to provide an integrated service covering investment, ownership, ship management, and supervision.
V.Group interim CEO Hanne Sorensen added: “Graig Ship Management has developed a leading reputation in Asia and Europe for offering both cost effective and high quality solutions to its customers.
“As the industry continues to develop, scale will be critical to underpin ever more efficient service delivery for customers and to enable the technology investments required to drive a step change in outcomes for our customers.
“By joining V.Group’s portfolio of ship management businesses, Graig Ship Management will be able to build upon its core service offering while drawing on the scale resources of the wider V. Group.
“For V.Group, this acquisition represents an opportunity to strengthen our marine services offerings to clients within Asia and the West, with a particular focus on dry bulk.”
In its latest accounts published in July Graig Shipping reported losses after tax of $3.9m in the year to December 2016 after a fall in turnover of 33% to $11.7m.
The company blamed difficult trading conditions in a volatile market and said: “Losses have been incurred from vessel trading and a number of investment projects that have been postponed.
However, there is an expectation of an upturn in the dry bulk market and the trading of the group-owned vessels more recently have shown improvement.”
The report said the ship management business had significantly reduced losses and that the size of the managed fleet had increased from 13 to 15 vessels.