Houston-based Kirby Corporation (NYSE: KEX) announced an agreement Wednesday to purchase the inland tank barge fleet of SEACOR Holdings for $88 million in cash.
The purchase will consist of 27 inland 30,000 barrel tank barges and 13 inland towboats, plus one 30,000 barrel tank barge and one towboat currently under construction. Also part of the agreement, Kirby will transfer to Seacor the ownership of one Florida-based ship docking tugboat.
Seacor, through its subsidiary SCF Waxler Marine LLC, transports refined petroleum products, petrochemicals and black oil on the Mississippi River System and Gulf Intracoastal Waterway.
“The purchase of the Seacor inland tank barge and towboat fleet further expands our inland marine fleet with well-maintained and recently constructed vessels,” commented David Grzebinski, Kirby’s President and Chief Executive Officer. “Operating primarily in the refined products trade, these assets will be complementary to our existing fleet and will allow us to continue to enhance customer service.”
Kirby Corporation, based in Houston, Texas, is the nation’s largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three coasts and in Alaska and Hawaii.
The closing of the asset purchase is expected to occur early in the second quarter of 2016 and is expected to be paid for using funds available under Kirby’s revolving credit facility.