Kirby Corporation has entered into an agreement with K-Sea Transportation Partners, an operator of tank barges and tugboats participating in the coastal transportation primarily of refined petroleum products in the United States.
As a result, a subsidiary of Kirby will merge with K-Sea, with K-Sea surviving the merger as a wholly owned subsidiary of Kirby. The total value of the transaction is approximately US$600 million and will consist of cash, Kirby common stock and the refinancing of K-Sea debt.
"We are very pleased to announce our agreement with K-Sea subject to their unitholders' approval," commented Joe Pyne, Kirby's Chief Executive Officer. "K-Sea is uniquely well positioned within the US coastwise tank barge business, and will be a terrific complement to Kirby's existing inland tank barge transportation service.
"With one of the youngest and largest fleets in its sector, K-Sea stands to benefit from the retirement of older tank barges in the coastwise trade, so we believe that the timing of this transaction is very favourable. K-Sea is a great foundation from which to expand our liquid transportation business into the US Jones Act coastwise trade and better serve our customers."
