Houston-headquartered Kirby Corporation (NYSE:KEX) is to purchase the ship bunkering operations of Enterprise Marine Services LLC for approximately $53 million in cash. The asset purchase will consist of 21 inland and offshore tank barges and 15 inland towboats and offshore tugboats. Enterprise provides transportation and delivery services for ship bunkers (engine fuel) to cruise ships, containerships and freighters primarily in the Miami, Port Everglades and Cape Canaveral, Florida area, the three largest cruise ship ports in the United States, as well as Tampa, Florida, Mobile, Alabama and Houston, Texas.
The closing of the asset purchase is expected to occur in February 2011. Funding of the acquisition will be through the use of Kirby's existing cash.
Kirby CEO Joe Pyne commented: "The purchase of the Enterprise ship bunkering assets expands our marine transportation operating footprint in Florida, as well as expands our existing Houston ship bunkering operation. The Enterprise tank barges are relatively new, with an average age of seven years and the large majority of the vessels are under time charter agreements ranging from two to three years."
"We expect the ship bunkering operations to be immediately accretive to Kirby's earnings," said Mr. Pyne. "Projected full year revenue from the asset purchase is anticipated to be in the $30 to $35 million range, generating projected full year net earnings in the $.05 to $.07 per share range."
Kirby Corporation, based in Houston, Texas, operates inland tank barges and towing vessels transporting petrochemicals, black oil products, refined petroleum products and agricultural chemicals throughout the United States' inland waterway system. Kirby also owns and operates four ocean-going barge and tug units transporting dry-bulk commodities in United States coastwise trade. Through its diesel engine services segment, Kirby provides after-market service for medium-speed and high-speed diesel engines and reduction gears used in marine, power generation and railroad applications.
February 2, 2011