Greek boxship owner Euroseas has agreed to acquire the 2006-built 1,740 teu Piraeus Trader, from UK owner Lomar Shipping for $25.5m.
The Nasdaq-listed firm expects the Liberia-flagged feeder containership to be delivered in October this year and enter into a three-year time charter contract for about $26,700 per day net to the company. The vessel will be renamed Jonathan P.
Aristides Pittas, chairman and CEO of EuroDry, commented: “We believe that this acquisition represents a transaction with limited downside risk given the three year charter contract we have entered with a first class charterer. This charter will contribute about $22m of EBITDA during the period of the contract providing us with a significant return on our investment and reducing, by the end of the charter, the cost basis of the vessel below its current scrap value.”
Pittas added that the company intends to continue expanding in a risk-measured and accretive manner, further establishing Euroseas as the main US publicly listed company focusing on feeder and intermediate container vessels. On a fully delivered basis, Euroseas’ fleet consists of 15 vessels with a further two on order and expected to deliver in 2023.
Lomar acquired the Piraeus Trader, formerly known as Fritz Reuter, from German owner Northern Shipping for around $4m in June 2020.