Genesis Energy, L.P. (NYSE:GEL) announced today that it has completed a previously announced acquisition of the black oil barge transportation business of Mandeville, La., headquartered Florida Marine Transporters, Inc. and its affiliates (FMT). The purchase price was $141 million plus customary adjustments. The acquired business comprises 30 barges (seven of which are being sub-leased under similar terms to an existing FMT lease) and 14 push/tow boats which transport heavy refined petroleum products, primarily serving refineries and storage terminals along the Gulf Coast, Intracoastal Canal and western river systems of the United States, including the Red, Ouachita and Mississippi Rivers.
According to an earlier Genesis statement, the barges have an average age of approximately three years, are double-hulled and fully compliant with OPA requirements. The boats are modern and efficient, 13 of them have been in service three years or less.
Prior to the acquisition Genesis maritime operations, included its DG Marine inland barge business (comprised of 20 barges and 10 push/tow boats. With the acquisition, all of the expanded fleet of 50 barges are capable of transporting heavy refined products, including asphalt, and, with minor modifications, half of the barges will be capable of transporting crude oil as well. The transaction was structured to provide uninterrupted service to existing FMT black oil customers utilizing current FMT personnel.
Grant Sims, Genesis’ Chief Executive Officer, said, “The acquisition of these high quality vessels represents a significant step forward in the development of our marine transportation of crude oil and heavy refined petroleum products. The integration of organic projects with focused external acquisitions is designed to expand our customer base and capabilities, creating long-term value for all our stakeholders.”
Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Its operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico.
August 9, 2011