Pangaea Logistics Solutions Expands Fleet with Strategic Shipping Inc. Merger

Pangaea Logistics Solutions Ltd. (Nasdaq: PANL) has announced a definitive agreement to merge fifteen handy-size dry bulk vessels from Strategic Shipping Inc. (SSI) into its existing fleet. The deal, valued at approximately $295 million, will expand Pangaea’s owned fleet by nearly 60% to 41 vessels.

The handy vessels are currently owned by SSI, a privately held company managed by M.T. Maritime Management (USA) LLC located in Southport, Connecticut.

As part of the transaction, Pangaea will issue about 19.0 million shares of its common stock to SSI, representing approximately 29% of the company’s outstanding common stock upon completion. The merger is expected to close in the fourth quarter of 2024, subject to customary closing conditions and shareholder approval.

“This transaction represents a transformational strategic milestone for our business, one that expands our owned fleet by nearly 60%, to 41 vessels, and provides us opportunities to drive incremental growth and improve our efficiency and profitability,” said Richard du Moulin, Chairman of the Board of Pangaea Logistics Solutions. “The addition of the SSI vessels to our existing fleet is consistent with our strategic focus on upgrading our owned vessel fleet to meet the evolving cargo needs of our customers.”

The merger aims to enhance Pangaea’s operational capacity and efficiency in meeting customer needs.

“The addition of these vessels will allow us to offer expanded services and will help us to better leverage our integrated shipping and port logistics models, improving overall fleet utilization, and maximizing our profitability,” added Mark Filanowski, Pangaea’s Chief Executive Officer.

As part of the agreement, SSI will have the right to designate two members for appointment to Pangaea’s Board of Directors. Additionally, seven employees from MTM’s dry bulk chartering and operations teams will join Pangaea, including Dan Schildt, who will become the company’s Chief Strategy Officer.