Leonhardt & Blumberg Enters the Tanker Market with Trio from Ardmore

German shipowner Leonhardt & Blumberg has entered the tanker shipping sector with the purchase of three MR2 product tankers from Ireland-based Ardmore Shipping.

The companies announced Monday that they agreed to terms for the sale of three 2008-built vessels for an aggregate price of $40 million. Immediately following the completion of the sales, which are expected to take place in the second quarter, Ardmore will time charter back each vessel for at least two years. Completion of each sale is subject to the satisfaction of certain conditions, including, for one vessel, a proposed closing date currently in advance of the current purchase lease option exercise date for that vessel, the companies said.

Leonhardt & Blumberg, known as an owner of feeder containerships, said it expects to take delivery of the three tankers between June and August of this year. The three 182.5-meter-long, 48,000 dwt sister ships were built in Japan and will be renamed Hansa Sealancer, Hansa Sealifter and Hansa Sealeader.

Torben Kölln, Leonhardt & Blumberg's Managing Director, said, "For quite some time, we were investigating other shipping segments to identify opportunities to diversify our fleet and by doing so fully utilize our team's skills and expertise. On this project, all our requirements are fulfilled: The timing, the market sentiment, the right assets and the right partner."

Anthony Gurnee, Ardmore's Chief Executive Officer, said, "The sale is consistent with Ardmore's capital allocation policy while also maintaining our commercial scale and earnings upside."

Following completion of the sales and the prepayment of financing associated with the vessels, the transaction will generate net cash of approximately $15 million to Ardmore, which will be used for general corporate purposes, the company said.