Publicly traded Kirby Corporation, Houston, Tex., finalized its $604 million acquisition of K-Sea Transportation Partners L.P., East Brunswick, N.J., greatly expanding its presence in the coastwise marine petroleum refined products transportation business.
K-Sea, which operates a fleet of 58 tank barges and 63 tugboats along the coasts of the U.S., as well as Hawaii and Alaska, will become a wholly owned subsidiary of Kirby. K-Sea has a relatively young fleet, with an average age of nine years old. Fifty-four of the 58 tank barges in its fleet are double hulled, including the DBL 77, shown in the thumbnail image at Bollinger Marine Fabricators in 2008.
The deal consists of $228 million of cash paid to K-Sea common and preferred unit holders and the general partner, $263 million of cash to retire K-Sea's outstanding debt, and $113 million through the issuance of approximately 1,939,000 shares of Kirby common stock valued at $58.28 per share, Kirby's closing share price on July 1, 2011. The transaction was financed through a combination of a new $540 million bank term loan and the issuance of Kirby common stock.
July 4, 2011