Kirby Corp agrees to acquire K-Sea Transportation
Less than a month after signing an agreement to purchase United Holdings for $270 million, Kirby Corporation has entered into an agreement to acquire K-Sea Transportation in a transaction valued at approximately $600 million. The transaction is expected to close in June or July 2011 and is subject to certain conditions, including approval by K-Sea’s unitholders and the expiration of the required waiting period under the Hart-Scott-Rodino Act. Pursuant to the transaction, a subsidiary of Kirby will merge with K-Sea, with K-Sea surviving the merger as a wholly owned subsidiary of Kirby. K-Sea operates tank barges and tugboats participating in US coastal transportation, primarily of refined petroleum products. K-Sea’s fleet of 58 tank barges and 63 tugboats operates along the US East Coast, West Coast and Gulf Coast, as well as in Alaska and Hawaii. Based in New Jersey, K-Sea also has major operating facilities in New York, Philadelphia, Norfolk, Seattle and Honolulu. According to Kirby’s CEO Joe Pyne, K-Sea will enable Kirby to expand its liquid transportation business into the US Jones Act coastwise trade. K-Sea’s projected FY 2011 revenues are anticipated to be between $240 million and $280 million. Assuming a closing in July, anticipated revenues for Kirby from K-Sea’s operations would be in the $130 – $150 million range. Quelle: eyefortransport |