New York Firm to Buy Maritrans

Monday, September 25, 2006
Overseas Shipholding Group Inc. has a definitive agreement to acquire Maritrans Inc., for $455 million. Terms call for New York-based Overseas Shipholding to acquire Maritrans in an all-cash transaction for $37.50 a share, a 47 percent premium over Maritrans' closing price of $25.50 on Sept. 22. OSG also will assume Maritrans' debt outstanding as of June 30, according to a release from the companies. OSG will finance the deal through a combination of available cash and borrowings under existing credit facilities, the release said.

Maritrans ships crude oil and petroleum products, and owns and operates one of the largest fleets of double-hull vessels serving the East coast and U.S. Gulf coast. OSG is one of the largest publicly traded tanker companies in the world. The deal diversifies OSG's U.S. Flag presence, the release said. The deal is expected to close by year-end 2006, subject to approval by a majority of Maritrans' shareholders and regulatory approvals. Jonathan Whitworth, chief executive of Maritrans, will become a senior vice president of OSG and oversee the combined companies' U.S. Flag strategic business unit, the release said. The U.S. Flag strategic business unit will operate its combined fleet from Maritrans headquarters in Tampa. UBS Investment Bank was OSG's financial advisor and Cravath, Swaine & Moore LLP was lead legal counsel. Merrill Lynch & Co., was Maritran's financial advisor and Morgan, Lewis & Bockius LLP is legal counsel. Maritrans, with $180.7 million in revenue in 2005, has been expanding its shipbuilding operations in Tampa. Source: Tampa Bay Business Journal

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