Houston-based Kirby Corporation said Monday that the company has completed its recently announced purchase of Penn Maritime as the United States’ inland and coastal waterways tank barge titan continues on its growth-through-aquisition strategy.
In a statement, Kirby said that the total value of the acquisition was approximately $299 million with $146 million in cash, $29 million from the issuing of 500,000 shares of Kirby common stock valued at $58.16 per share and $124 million to retire Penn’s debt.
Penn’s fleet, comprised of 18 double-hulled tank barges with a capacity of 1.9 million barrels and 16 tugboats, has an average age of 13 years and primarily transports refinery feedstocks, asphalt and crude oil along the East Coast and Gulf Coast of the United States. Penn’s customers include major oil companies and refiners, nearly all of whom are current Kirby customers for inland tank barge services.
For Kirby, the deal marks the second major fleet acquisition of the 2012. In November, Kirby completed a $116 million deal to acquire 13 barges and seven tugboats from Allied Transportation Company. In 2011, Kirby Corp. purchased Enterprise Marine Services, United Holdings, K-Sea Transportation, and Seaboats, Inc.