Team Tankers International entered into share purchase agreements to acquire all outstanding shares in Laurin Shipping and Anglo-Atlantic Steamship Company. The total estimated enterprise value of the series of transactions is approximately $206 million.
Upon completion of the transactions, Team Tankers will grow its fleet from 37 to 52 vessels.
“We have communicated to the market the need for consolidation in the chemical tanker industry. As a first step towards further consolidation, we are pleased to announce this combination with Laurin Shipping and Anglo-Atlantic. Team Tankers will benefit greatly from Laurin Shipping’s deep relationships, years of experience and Anglo-Atlantic’s contracted cargo coverage. We believe that the current level of asset prices in the shipping cycle provides a favorable point of entry for this investment,” said Team Tankers’ Chief Executive Officer Hans Feringa.
Laurin Maritime’s CEO Mikael Laurin stated, “We are excited to join forces with a leading listed chemical tanker operator. The combination of the three companies will create a focused and integrated entity with ample muscle to make the most of future market opportunities.”
Financing for the transactions will come from Team Tankers’ cash on hand and a new $220 million senior secured credit facility that will refinance the existing indebtedness of both Team Tankers and Anglo-Atlantic. The $220 million facility will consist of a $200 million term loan and a $20 million revolver and will contain terms similar to Team Tankers’ existing loan agreements. ABN AMRO was appointed sole bookrunner and agent for the facility.
