Stolt-Nielsen has agreed to acquire the chemical tanker operations of Jo Tankers for $575m.
The transaction comprises 13 chemical tankers and a 50% share in a joint venture with eight chemical tanker newbuildings. The total purchase price is approximately $575.0 million.
Funding for the transaction has been secured through some of Stolt-Nielsen’s main banks with a combination of bridge financing, secured term loans and available corporate funds.
The transaction is subject to competition authority approval, with a decision expected before the end of September this year.
Commenting on the transaction, ceo Niels Stolt-Nielsen, said, “The transaction covers the tonnage replacement needs of our current chemical tanker fleet for the next several years. While giving us some operational savings, it adds new trade routes to our service offering, thus expanding our presence on key tradelanes and enabling us to better serve the needs of our global customer base.”
The 13 chemical tankers consist of eight all stainless steel ships, ranging from 19,000 dwt to 38,000 dwt, and five ships with a combination of stainless steel and coated tanks, all of approximately 37,000 dwt. Six of the 13 ships have been on time charter to Stolt Tankers for the last five years.
The newbuildings included in the transaction consist of eight all stainless steel ships of 33,000 dwt on order from New Times Shipbuilding in China, the first of which was delivered earlier this month. The seven remaining newbuildings are to be delivered in the second half of 2016 and in 2017.
