Kirby acquires Higman Marine fleet in $419 million deal

US-based Kirby Corporation will acquire Higman Marine for US$419 million.

Higman’s marine transportation fleet consists of 159 inland tank barges with 4.8 million barrels of capacity, and 75 inland towboats.

It moves petrochemicals, refined petroleum products, crude oil, natural gas condensate, and black oil on the Mississippi River system and Gulf Intracoastal Waterway for large midstream and global integrated oil companies.

The closing of the acquisition, which will be financed through additional borrowings, is expected to occur in the first quarter.

Kirby’s President and Chief Executive Officer David Grzebinski said Higman was an “excellent fit” for Kirby.

“Higman’s inland fleet of 30,000-barrel tank barges, approximately 80 per cent of which are clean and 20 per cent heated black oil vessels, has an average age of seven years, and is one of the younger fleets in the industry”, said Mr Grzebinski.

 “With an average age of seven years, the addition of Higman’s towboats to Kirby’s horsepower profile will allow us to avoid significant future capital outlays for new towboats.”