June 17, 2008
Aegean Marine Petroleum Network enters North American market
International bunker and lubes supplier Aegean Marine Petroleum Network Inc. (NYSE: ANW), is to acquire Vancouver-based ICS Petroleum, a leading marketer and supplier of marine fuel in Canada and Mexico. The acquisition is scheduled to close in July 2008.
As part of the deal, Aegean is to purchase two single-hull barges, used in the delivery of marine fuel, from ICS; these barges are eligible for employment until 2015.
Formed in 1984, ICS markets marine fuel to the Western and Eastern Canadian markets from its offices in Vancouver and Montreal. In addition, the company acts as a physical supplier in Vancouver. ICS also markets marine fuel in Mexico. In 2007, the company sold over 560,000 metric tons of marine fuel across all its regions.
Aegean President E. Nikolas Tavlarios said that with the acquisition, "Aegean is positioned to once again capitalize on an attractive market opportunity that further expands its global network for the physical supply of marine fuel. ICS has a well-established business with a strong reputation that will provide a critical bunkering presence for Aegean in North America."
He said Aegean intends to finance the acquisition through borrowings under its $300 million senior secured revolving credit facility."
ICS Petroleum will function as a wholly owned subsidiary of Aegean and will continue to operate business out of its Vancouver and Montreal offices. "We are thrilled to join Aegean," said Justin Noice of ICS. "Aegean is the premier independent physical supplier of marine fuel globally and through our business combination, ICS will be able to leverage off of the company's vast global platform and access to capital allowing for continued growth and success for our business."