June 5, 2008
K-Sea buys Roehrig tugs
K-Sea Transportation Partners L.P. (NYSE: KSP) announced today that it has acquired eight tugboats previously owned and operated by affiliates of Roehrig Maritime, LLC of New York. The purchase price, including certain ancillary equipment, was approximately $41.9 million in cash, and the transaction is expected to be immediately accretive to K-Sea's distributable cash flow. The tugboats range in size from 2,400 horsepower to 6,000 horsepower, and will provide additional towing power to K-Sea or continue to work under their current charter contracts.
K-Sea President and CEO Timothy J. Casey, said "This acquisition is an important step in ensuring that K-Sea continues to provide the best possible service to our customers. These tugboats will reduce our outside towing costs or be chartered out under existing contracts. Importantly, this transaction ensures we will have sufficient power for our new barges which are scheduled to be delivered through 2010. We have worked closely with Chris Roehrig and his staff for many years and are happy to welcome these vessels and their crews to the K-Sea family."