By Aleksey Stemmer / Shutterstock
Pangaea Logistics Solutions (NASDAQ: PANL) has successfully expanded its existing fleet with fifteen handy-size vessels from Strategic Shipping Inc. (SSI), a privately held company managed by M.T. Maritime Management (USA) LLC located in Southport, Connecticut.
The transaction, which closed on December 30, 2024, involved Pangaea issuing approximately 18 million shares of common stock to SSI, representing a 27.6% stake in the company. The acquired vessels were valued at $271 million, including $100 million in assumed vessel financing, resulting in a net asset value of $171 million.
The acquisition expands Pangaea’s owned fleet by nearly 60% to 41 bulk carriers ranging in sizes.
Mark Filanowski, Pangaea’s Chief Executive Officer, emphasized the strategic importance of the merger: “Our owned fleet of 41 ships in the range of handy to post-Panamax sizes, matched with our growing terminal operations, provide our customers with new alternatives for their dry bulk logistics requirements.”
The expanded fleet positions Pangaea to better serve its diverse customer base, which requires transportation for various dry bulk cargoes including grains, coal, iron ore, and other industrial materials.
The merger, facilitated by DNB Markets, Inc. as financial advisor and Seward & Kissel LLP as legal counsel, represents a strategic move to strengthen Pangaea’s position in the competitive maritime logistics sector. The company’s comprehensive service offering now includes enhanced cargo loading, port operations, vessel chartering, and technical management capabilities.
Filanowski added that the company plans to leverage this expansion to grow both its cargo base and chartered-in fleet operations, focusing on maximizing efficiencies through position arbitrage against their cargo book.
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