Aristides Pittas led Euroseas has entered into agreements with Synergy Holdings to acquire four 4,253 teu containerships for around $40m.
The vessels acquired are the 2008-built Synergy Oakland, and 2009-built trio Synergy Busan, Synergy Antwerp and Synergy Keelung. Euroseas will assume the charters attached to the vessels
As part of the transaction, Euroseas has also agreed to acquire certain management services of Synergy Marine for the next three years. Synergy chairman Andreas Papathomas joins the Euroseas board.
The deal will be financed by bank debt, existing funds and $6m raised in private placements. Both Synergy and Pittas company Eurobulk have subscribed equally to the placement.
Euroseas has also agreed to issue an additional $0.5m in shares to Synergy if certain conditions are fulfilled in one year.
Commenting on the deal, Aristides Pittas said: “We are very pleased to announce again today another transformative transaction for Euroseas following the four vessels we acquired in August 2019. This time, we have agreed to acquire four additional vessels of average age of about 11 years, not only expanding our fleet but also renewing it by reducing its average age by about 2 years. This is a significant transaction for the Company as it takes a meaningful presence in the Panamax markets. The transaction validates our strategy to become the only publicly listed platform to consolidate feeder and intermediate containerships. At the same time, this transaction underscores the belief of the main shareholders of Euroseas (including myself and the broader Pittas family) in the prospects of the Company. The same confidence in the prospects of the Company is shown by Synergy Holdings. We are very pleased that Andreas Papathomas has joined the Board at this exciting time. His deep knowledge and understanding of shipping operations, sale & purchase, chartering and capital markets will add considerable value to the Board.”