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K-Sea Transportation Partners L.P. Acquires Tugboats from Roehrig Maritime |
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Thursday, 05 June 2008 14:05 |
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Business Wire
Posted: 2008-06-05 14:19:00
K-Sea Transportation Partners L.P. (NYSE: KSP) announced today that it has acquired eight tugboats previously owned and operated by affiliates of Roehrig Maritime, LLC of New York. The purchase price, including certain ancillary equipment, was approximately $41.9 million in cash, and the transaction is expected to be immediately accretive to K-Sea s distributable cash flow. The tugboats range in size from 2,400 horsepower to 6,000 horsepower, and will provide additional towing power to K-Sea or continue to work under their current charter contracts.
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Timothy J. Casey, President and CEO of K-Sea, said This acquisition is an important step in ensuring that K-Sea continues to provide the best possible service to our customers. These tugboats will reduce our outside towing costs or be chartered out under existing contracts. Importantly, this transaction ensures we will have sufficient power for our new barges which are scheduled to be delivered through 2010. We have worked closely with Chris Roehrig and his staff for many years and are happy to welcome these vessels and their crews to the K-Sea family.
About K-Sea Transportation Partners
K-Sea Transportation Partners is one of the largest coastwise tank barge operators in the United States. The Company provides refined petroleum products transportation, distribution and logistics services in the U.S. domestic marine transportation market, and its common units trade on the New York Stock Exchange under the symbol KSP. For additional information, please visit the Company s website, including the Investor Relations section, at www.k-sea.com .
Cautionary Statements
This press release contains forward-looking statements, which include any statements that are not historical facts, such as the Company s expectations regarding the benefits to be derived from the acquisition, integration of the acquired vessels, accretion, reductions in towing costs, new charters and future results of operations. These statements involve risks and uncertainties, including, but not limited to, insufficient cash from operations, a decline in demand for refined petroleum products, a decline in demand for tank vessel capacity, intense competition in the domestic tank barge industry, the occurrence of marine accidents or other hazards, the loss of any of the Company s largest customers, fluctuations in charter rates, failure to comply with the Jones Act, modification or elimination of the Jones Act and adverse developments in the marine transportation business and other factors detailed in the Company s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. The Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
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