A subsidiary of Seattle-based Saltchuk Resources, one of the nation’s leading transportation and petroleum distribution companies, has entered into a binding purchase and sale agreement to acquire Tropical Shipping, a subsidiary of New York-listed AGL Resources, Inc. (NYSE: GAS), and its related companies for approximately $220 million.
The acquisition includes the Bahamas and Caribbean-focused shipping and logistics company, Tropical Shipping and all of its related transportation, consolidation and cargo insurance companies.
Tropical and its related companies will become Saltchuk’s sixth line of business with its international foreign flagged shipping and logistics operation. Tropical will continue to operate as a standalone operation.
Saltchuk says the addition of Tropical Shipping furthers the company’s commitment to the Caribbean market, which for the past fifteen years has been serving the people of Puerto Rico through Sea Star Line, its U.S. flag operation. Tropical’s foreign flag fleet provides service to the balance of the region, Saltchuk says.
With the addition of Tropical, Saltchuk will employ 7,500 people nationwide.
“Most importantly, Tropical shares our values. The Company has a strong safety culture, has the best on time service in its region, and is committed to giving back to the communities which it serves,” said Saltchuk Chairman Mark Tabbutt and President Tim Engle in an announcement to employees. “All of the traits that make our other companies so strong can be found also at Tropical.”
The sale is expected to close within the next 90 days.