K-Sea Transportation has agreed to acquire Smith Maritime of Honolulu, Hawaii and Sirius Maritime of Seattle, Washington for a total purchase price of approximately US$205 million.
The transactions are expected to be completed in July or early-August, subject to customary closing conditions.
On a combined basis, these operations include eleven petroleum tank barges and ten tugboats, aggregating 777,000 barrels of capacity. The addition of these tank barges represents a 22% increase in the barrel-carrying capacity of K-Sea’s fleet to about 4.3 million barrels.
K-Sea took delivery last week of another new, 28,000 barrel double-hulled tank barge, which is part of its fleet expansion and upgrade program. Ten more double-hulled tank barges, totalling 524,000 barrels of additional capacity, are scheduled to be delivered before end-2010, at which time K-Sea’s total barrel-carrying capacity will have more than doubled to 4.8 million barrels.
Gordon Smith, who controls Smith Maritime and is also one of the three owners of Sirius Maritime, will join the management of K-Sea.
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