FEBRUARY 5, 2018 — Kirby Corporation (NYSE: KEX) reports that it has signed a definitive agreement to acquire Higman Marine, Inc. and its affiliated companies for approximately $419 million in cash, subject to certain closing adjustments.
The purchase will be financed through additional borrowings.
Higman’s marine transportation fleet consists of 159 inland tank barges with 4.8 million barrels of capacity, and 75 inland towboats and 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 acquisition is expected to close in the first quarter.
David Grzebinski, Kirby’s President and Chief Executive Officer, commented, “The acquisition of Higman and its young fleet of well-maintained inland tank barges and towboats is an excellent fit with Kirby’s operations. Higman’s inland fleet of 30,000 barrel tank barges, approximately 80% of which are clean and 20% heated black oil vessels, has an average age of seven years, and is one of the younger fleets in the industry. 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.”
Grzebinski said the acquisition was expected to be earnings neutral in 2018 as “it will take time to align Higman’s tank barge utilization rates with Kirby’s, and industry pricing has not yet improved from historically low levels.”
“Overall, as the inland market begins its recovery, the timing of the Higman acquisition is ideal as it will further upgrade our fleet and ultimately allow Kirby to emerge from the downturn larger, more efficient, and better able to serve our customers,” he noted.