International Shipholding Corporation announced the successful closing of the previously announced acquisition of U.S. United Ocean Services, LLC (“UOS”), a provider of marine transportation services for dry bulk and break-bulk commodities in the United States. The acquisition was completed for a total purchase price of $111 million cash and is expected to be immediately accretive to earnings and operating cash flow.
With the addition of UOS, which operates two handysize bulkers and four tug/barge units, ISH has a leading position in the U.S. Jones Act dry bulk market with total capacity of 197,000 dead weight tons. The UOS fleet operates on long-term contracts with longstanding customers. This acquisition provides ISH with a more diverse product offering and improved operating efficiencies and is expected to increase the Company’s contracted revenue stream to approximately 68% of total revenue in 2013.
Mr. Niels M. Johnsen, ISH’s Chairman and Chief Executive Officer , stated, “With the closing of the UOS acquisition, we have strengthened our presence as a leader in the U.S. Jones Act dry bulk market. This acquisition complements our proven growth strategy providing value to our shareholders by operating in niche markets on medium to long-term contracts with quality counterparties.”
DNB Markets, Inc. acted as exclusive financial advisor to ISH.
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International Shipholding Corporation, December 3, 2012