Kirby's $600m takeover of K-Sea heads toward close in July

29 June 2011 19:46  [Source: ICIS news]

HOUSTON (ICIS)--Kirby’s takeover of barge operator K-Sea Transportation headed toward an early July close with a shareholder vote this week, Kirby said on Wednesday.

Shareholders representing nearly 86% of K-Sea’s stock have chosen to receive cash or a combination of cash and stock to complete the $600m (€420m) deal, Kirby said.

Almost 49% of K-Sea’s stockholders chose a cash payment of $8.15 per share from Kirby. About 37% chose the cash-stock combination.

Those K-Sea holders who made no choice by the Tuesday deadline will receive the all-cash deal.

When Kirby announced the deal in March, it estimated a payment of $335m to K-Sea shareholders plus the assumption of $265m in K-Sea debt.

Houston-based Kirby is one of the largest US tug and tank barge operators, operating 846 tank barges and 238 towboats that primarily serve the petrochemical and refining industry along the Gulf coast.

K-Sea, based in New Jersey, has a fleet of 63 tank barges and 64 tugboats and includes major oil companies, oil traders and refiners among its customers, according to the company.

Kirby said it expects to close the K-Sea acquisition in the first week of July.

($1 = €0.70)

By: Lane Kelley
+1 713 525 2653

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