Kirby to buy competitor's vessels in $68 million deal

The following is the text of a news release from Kirby Corp.:

(HOUSTON) — Kirby Corp. on Monday announced the signing of an agreement to purchase certain inland marine assets from an undisclosed competitor for $68 million. The asset purchase will consist of nine specialty pressure tank barges, four 30,000-barrel tank barges, and three 1,320-horsepower inland towboats. The closing of the asset purchase is expected to occur by July 15, and is subject to certain customary conditions. The acquisition is expected to be paid for using funds available under Kirby's revolving credit facility.

David Grzebinski, Kirby's president and chief executive officer, said, "The purchase of these pressure barges and accompanying towboats boosts our ability to meet our customers' transport demands for specialty cargoes such as liquefied petroleum gas. The addition of these recently constructed, well-maintained pressure barges will enhance the performance of our inland barge fleet. The four 30,000-barrel tank barges will fit seamlessly in our clean fleet which primarily moves petrochemicals and refined products. We expect the transaction to be $0.01-$0.02 per share accretive to 2017 earnings."    

By Professional Mariner Staff