Rand Logistics, Inc. today announced that it has signed a binding asset purchase agreement, whereby its designated subsidiary, Lower Lakes Towing Ltd. (“Lower Lakes”) will acquire the Maritime Trader, a Canadian flagged dry bulk carrier, subject only to final approval by the Federal Court of Canada.
Concurrent with final court approval, Lower Lakes will enter into a long term contract of affreightment for substantially all of the sailing days related to the acquired vessel. It is anticipated that the closing of the transaction will occur prior to July 31, 2011. The acquisition, which increases the Company’s fleet size to fifteen dry bulk carriers, including twelve self unloading and three bulk carriers, is projected to be accretive to Rand’s free cash flow per share for the year ending March 31, 2012.
Scott Bravener, President of Lower Lakes commented, “ We are pleased to announce the addition of the Maritime Trader to our fleet. It is a vessel that we are very familiar with, having marketed it for the last four years on behalf of an unaffiliated third party on terms that generated no profit for Rand. I am also pleased that we will enter into a long term contract of affreightment to meet the growth needs of an important existing customer, further solidifying this relationship .”
[mappress] Source: Marketwatch, July 15, 2011.