Merger Creates $1.65B Tanker Giant
Greek shipping company Capital Product Partners has agreed to spin off its crude and product tanker business and merge it with the tanker businesses owned by DSS Holdings.
The $1.65 billion transaction involving 68 tankers is expected to create the third largest publicly traded MR and product fleet in the world, and one of the world’s largest public mixed product and crude fleet operators
The new company, to be called Diamond S Shipping Inc., will be a market leader in the crude and product tanker markets, benefitting from a balanced and large-scale portfolio of vessels, strong management leadership and a cost-efficient commercial platform.
DSS Holdings is a privately held company and one of the world’s largest owners and operators of medium-range product and Suezmax crude tankers.
Diamond S Shipping Inc.’s asset portfolio will consist of the combined product and crude tanker fleet of CPLP and DSS, totaling 68 high-quality tankers, with an average age of 7.8 years, including 52 product tankers and 16 crude tankers, positioning the new public company to capitalize on the improving fundamentals in the tanker market on a greater scale.
The new company is expected to be well capitalized, with post-close net debt to fleet value of approximately 60% and total liquidity in excess of $90 million.
Craig Stevenson, Jr., CEO of DSS, will serve as the CEO of Diamond S Shipping Inc. Mr. Stevenson has over 40 years of experience in the shipping industry and previously served as the Chairman and the Chief Executive Officer of OMI, a NYSE-listed tanker company. The Diamond S management team will continue to serve in senior management positions.