NYSE-listed Teekay Tankers (TNK) has agreed to acquire a fleet of twelve modern Suezmax tankers currently owned by Principal Maritime Tankers, a portfolio company of private equity firm Apollo Global Management.
The 12 represent the entire crude oil fleet of Principle Maritime.
Teekay said the aggregate purchase price for the vessels is $662 million and that the acquisition is fully financed.
The addition of 12 ships will make Teekay Tankers one of the largest owners of Suezmax tankers in the world with a total 22 ships. With an average age of only 5.5 years, the 12 Suezmax’s will also help reduce the average age of Teekay Tankers’ fleet by 1.2 years, Teekay said.
The vessels included in the transaction are scheduled to deliver to Teekay Tankers by the end of October 2015 and are expected to operate in the spot tanker market upon or soon after delivery.
“The acquisition of this high quality, on-the-water fleet is strategically important for Teekay Tankers and provides significant commercial and financial benefits,” commented Kevin Mackay, Teekay Tankers’ Chief Executive Officer. “Teekay Tankers will become one of the largest owners of modern Suezmax tankers at the right point in the tanker market cycle when positive market fundamentals support continued strength in spot tanker rates. Including the five Aframax tankers we acquired earlier this year, this acquisition will increase Teekay Tankers’ owned fleet by over 60 percent and solidifies our position as the largest owner and operator of mid-size crude oil tankers. This significant increase in our scale will allow us to further optimize our fleet efficiencies, enhance our service offering to both existing and new customers across more regions, and expand our presence in the evolving global Suezmax trade-routes. With a larger fleet, we are better positioned take advantage of the growing demand for Suezmaxes resulting from greater long-haul Suezmax movements from the Atlantic to Pacific basins as well as the niche intra-regional voyages that are increasingly stretching Suezmax tonnage supply.”
Teekay Tankers currently owns a fleet of 44 double-hull tankers, including 22 Suezmax tankers (including the 12 acquired vessels), 12 Aframax tankers, seven LR2 product tankers and three Medium-Range (MR) product tankers, and has 11 time charter-in tankers.