Kirby Grabs Penn Maritime for $295M
Penn Maritimes barges transport oil products
Kirby Corp. (NYSE: KEX) will buy Penn Maritime Inc., an operator of tank barges and tugboats, for $295 million.
The deal comes less than a month after Kirby completed the purchase of 13 barges and seven tugboats from Allied Transportation Co., a subsidiary of Allied Marine Industries Inc., for $116 million in cash.
The deal will be financed through a combination of Kirby’s revolving credit facility, the issuance of new unsecured fixed-rate senior notes and Kirby common stock. The deal includes $115 million in Penn Maritime’s debt. Penn Maritime transports black oil products with a fleet of 18 barges that have a 1.9 million barrel capacity.
Kirby, based in Houston, operates domestic tank barges that transport bulk liquid products.
Penn Maritime is headquartered in Stamford, Conn., with offices in Slidel, La. and Staten Island, N.Y.
Skadden Arps Slate Meagher & Flom LLP represented Penn Maritime’s shareholders on the deal.
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