KIRBY CORP acquired Higman Marine, Inc. for approximately $419 million in cash, a transaction completed in February 2018, structured as all cash (financed through additional borrowings).
Higman Marine, Inc. operates in Marine transportation (inland), is based in Mississippi River System and Gulf Intracoastal Waterway, USA. Higman Marine, Inc. and its affiliated companies, an operator of inland tank barges and towboats. Higman's marine transportation fleet consists of 159 inland tank barges with 4.8 million barrels of capacity and 75 inland towboats, moving petrochemicals, refined petroleum products, crude oil, natural gas condensate, and black oil on the Mississippi River System and Gulf Intracoastal Waterway.
The acquisition of Higman and its young fleet of well-maintained inland tank barges and towboats is an excellent fit with Kirby's operations.
Young fleet (average age seven years) of 159 tank barges and 75 towboats, letting Kirby avoid future newbuild capital outlays. Expected to align Higman's tank barge utilization rates with Kirby's; near-term earnings neutral with rapid post-deal deleveraging expected. Kirby inland marine transportation segment
The acquisition of Higman and its young fleet of well-maintained inland tank barges and towboats is an excellent fit with Kirby's operations. Higman's inland fleet of 30,000 barrel tank barges, approximately 80% of which are clean and 20% heated black oil vessels, has an average age of seven years, and is one of the younger fleets in the industry.David Grzebinski, President and CEO, Kirby Corporation
Advisory firms were not disclosed for this transaction.