Stolt-Nielsen's Acquisition of Jo Tankers Approved
Stolt-Nielsen Limited has received unconditional Competition Authority approvals of its plans to acquire the chemical tanker operations of Jo Tankers. The acquisition is expected to be finalized before the end of November.
The transaction comprises 13 chemical tankers and a 50 percent share in a joint venture with eight chemical tanker newbuildings, representing an enterprise value of $575 million. The acquired ships would satisfy the tonnage-replacement needs of the Stolt Tankers' fleet for the next several years and add new trade routes that enhance the company's global service capabilities.
Funding for the transaction has been secured through Stolt-Nielsen main commercial banks with a combination of bridge financing, secured term loans and corporate funds. The financing of the ships in the joint venture will be off balance sheet. The net addition to Stolt-Nielsen’s debt from the transaction will be about $465 million. Following the transaction, available liquidity for the company will be approximately $300 million.
Stolt-Nielsen emerged as the best buyer after an open international process, says Jo Tankers. “The business environment requires economy of scale, global capacities and increased service flexibility,” says Nils-Petter Sivertsen, CEO. “In each of these areas Jo Tankers has reached the limit of our capabilities.”
Stolt-Nielsen is a global provider of integrated transportation solutions for bulk liquid chemicals, edible oils, acids and other specialty liquids through its three largest business divisions, Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers. Stolt Sea Farm produces and markets high quality turbot, sole, sturgeon and caviar. Stolt-Nielsen Gas develops opportunities in LPG and LNG shipping and distribution.