Kirby Corporation announced on Friday the completion of the acquisition of K-Sea Transportation Partners, an operator of tank barges and tugs participating in the coastal transportation primarily of refined petroleum products in the United States. K-Sea will become a wholly owned subsidiary of Kirby.
The total value of the transaction is approximately US$604 million (before transaction fees), consisting of cash, debt-refinancing and common stock. The transaction was financed through a combination of a new $540 million bank term loan and the issuance of Kirby common stock.
K-Sea's fleet comprises 58 tank barges with a capacity of 3.8 million barrels and 63 tugs. Its tank barge fleet, 54 of which are doubled-hulled, has an average age of approximately nine years, making it one of the youngest fleets in the coastwise trade. K-Sea's customers include major oil companies and refiners, many of which are current Kirby customers for inland tank barge services.