International Seaways Inc. and Diamond S Shipping Inc. have merged, in an agreement in which Seaways shareholders will hold approximately 55.75 percent of the stock in the merged company and Diamond S shareholders will hold 44.25 percent. The shipping business is receiving a lot of attention lately, due to the Ever Given ship getting stuck in the Suez Canal, causing delays in the worldwide supply chain.
Douglas Wheat, Lois Zabrocky and Jeffrey Pribor will continue to serve as the chairman of the board of directors, CEO and chief financial officer of INSW, respectively, and the current CEO of Diamond S, Craig Stevenson Jr., will join the board of directors of INSW, and also act as a special advisor to the CEO for a six-month period to ensure a smooth transition.
Zabrocky said “By bringing together two leading U.S.-based diversified tanker owners, we expect to deliver a number of compelling strategic and financial benefits to the stakeholders and customers of both companies. Specifically, with our enhanced scale and capabilities combined with a best-in-class ESG track record, we are ideally positioned to meet the evolving needs of leading energy companies and capitalize on favorable long-term industry fundamentals.”
Stevenson commented, “By combining our fleet and capabilities with INSW’s world-class operations, we believe the merger will significantly benefit each company’s stakeholders as market conditions improve. Importantly, both INSW and Diamond S share a similar focus on people, safety, meeting customer expectation, maintaining balance sheet strength, and appropriately managing leverage in an inherently cyclical industry. As a long-time proponent of industry consolidation, I believe this transaction gives the combined company the scale and diversity necessary to hold the status as a leader in the tanker markets for years to come.”
Jefferies LLC is serving as INSW’s financial advisor for the transaction with Cleary Gottlieb Steen & Hamilton LLP and Holland & Knight LLP acting as its legal advisors. Seward & Kissel LLP is representing Diamond S as legal advisor.