Fridhems varv

Fridhems varv is located in Lysekil and provides services to customers all the way from Gothenburg to Strömstad. Fridhems varv carries out all types of shipyard work and its fields of competence comprise everything from painting to electrical work, thus providing the customer with overall solutions. The maintenance yard’s principal speciality is the renovation of Aquamaster thrusters, including a complete test plant.

The maintenance yard has a unique geographical location and is the northernmost maintenance yard of its size on the west coast. It is the first choice for many of Färjerederiet’s cable ferries and a number of other customers in the area. Acquiring the maintenance yard would provide the unexploited opportunity to promote the business on the large Norwegian market.

At the beginning of the 21st century the maintenance yard was given a more independent role in creating a wider customer base and a framework agreement has even been entered into with the Swedish Coast Guard. Färjerederiet now accounts for 56 % of the maintenance yard’s total turnover and provides an essential form of stability to the maintenance yard both now and in the future. Färjerederiet, Sweden’s largest shipping company, transports 21 million passengers and 11 million vehicles annually on its 63 yellow ferries. By order of the Swedish Transport Authority, the company serves 37 routes in the public highway network.

Fridhems varv’s turnover change has been slightly negative since 2007. This might be a result of fewer orders from Färjerederiet as the company has increasingly opened the maintenance of some of its ships to competitive bidding. In 2009 Fridhems varv made a loss of 0.7MSEK (operating result of 61KSEK), mainly as a result of a customer credit loss. In 2010 however, the maintenance yard was successful in turning a strong profit of 7 % and Fridhems varv continues to show huge development potential.

The sale of Fridhems varv includes the shipyard business, personnel and equipment. A more detailed description of Fridhems varv (including a list of the assets included in the sale) is given in the invitation to tender.

Background to the sale

On 17 February the Swedish Transport Administration’s board of directors made the decision to back the director-general’s proposal to sell one or both of Färjerederiet’s maintenance yards at a time suitable for the market. As a result of this, investigations have been made into the shipyard market and possibilities for a possible sale have been identified. The Swedish Transport Administrator’s director-general has made the decision to make the sale of Fridhems varv public and thereby initiate the sales process.

The objective of the sale is to provide the maintenance yard with better opportunities to expand/develop the business and to follow state policy with the maintenance yard filling the state’s criteria for conversion into a company:

• That there are functioning private markets for shipyard services
• That it provides clearer conditions for the market
• That the risks of oligopoly/monopoly on the private market can be restricted through, for example, long contracts or procurement within the state etc.

The sales process

The first stage in the sale of Färjerederiet’s maintenance yards is an application of interest. The objective of the application of interest is to determine, with a limited effort, whether it is worth proceeding to the next stage of the process, which requires significantly more effort from both parties. Following that, those parties that share a common interest with the Swedish Transport Administration are selected and provided with the opportunity to submit a tender and visit the maintenance yard. Negotiations are then initiated with a small number of parties that have submitted the most favourable tenders. When a contract of sale has been signed, the business is then transferred between the parties. 

Application of interest  October 2011
by 25 October

Tender by   November 2011
by  30 November
Visit to maintenance
yard (see website for
date)

Negotiation/  February 2012
Due Diligence

Transfer   March 2012

Maintenance yard  April 2012 and onwards
under new ownership
Figure 2. Process description: sales of Fridhems varv

FRIDHEMS VARV

Fridhems varv in brief

Location:   Lysekil
Slipway (length x width):  2 x 300 tons (50m x 15m)
Tug boats (length x width): Fridde (12.03m x 4.21m)
   Lill-Fridde (7m x 2.35m)
Resources:   Lathes, cutting machines and bending machines
Number of employees:  18
Specialist competence:  Thrusters (Aquamaster)
Main customers: Färjerederiet, Sbs Bogsering & Sjötransport, Baggermaatschappij Bv etc
Turnover 2010: 23 500KSEK
After-tax profits: 600KSEK

FRIDHEMSVARV
- A COMPLETE MAINTENANCE YARD

FÄRJEREDERIET
The Swedish Transport Administration

The Swedish Transport Administration Färjerederiet, Box 51, 18521 Vaxholm,
Visiting address: Norrhamnsgatan 3. Telephone: 08-544 415 00. Fax: 08-544 415 10
www.trafikverket.se