Stolt-Nielsen buys Jo Tanker's Chemical Tanker Ops

Stolt-Nielsen buys competitor's chemical tanker operations. Deal includes 13 chemical tankers and 50 pct in 8 newbuilds.

Details of the deal include:

 

• Stolt-Nielsen agrees to acquire the chemical tanker operations of Jo Tankers.
• Stolt-Nielsen says total purchase price is approximately $575 million, including proportional share of newbuildings in joint venture.
• The transaction comprises 13 chemical tankers and a 50 pct share in a joint venture with eight chemical tanker newbuildings.
• Stolt-Nielsen says funding for transaction has been secured through some of Stolt-Nielsen limited's main banks with a combination of bridge financing, secured term loans and available corporate funds.
• Stolt-Nielsen ltd says transaction is subject to competition authority approval, with a decision expected before end of September 2016.

 

CEO Niels G. Stolt-Nielsen says transaction covers the tonnage replacement needs for the next several years and that the deal will give some operational savings and add new trade routes

Stolt-Nielsen shares traded up 2.3 percent to NOK 111.5 after the announcement compared to a rise of 0.5 percent just ahead of the announcement. The 13 chemical tankers consist of eight all stainless steel ships, ranging from 19,000 dwt to 38,000 dwt, and five ships with a combination of stainless steel and coated tanks, all of approximately 37,000 dwt. Six of the 13 ships have been on time charter to Stolt Tankers for the last five years. The newbuildings included in the transaction consist of eight all stainless steel eco-friendly ships of 33,000 dwt on order from New Times Shipbuilding in China, the first of which was delivered in early July 2016. The seven remaining newbuildings are to be delivered in the second half of 2016 and in 2017.

 

Reporting By Ole Petter Skonnord