Saltchuk Resources has completed its tender offer to acquire all of the outstanding shares of common stock of New York-listed transportation company Overseas Shipholding Group not already owned by Saltchuk, for a purchase price of $8.50 per share in cash at an enterprise value of about $950m.
The privately owned family Saltchuk – with freight transportation, marine service, and energy distribution companies – said the deal closed yesterday morning and OSG with its 21 vessel U.S.-Flag fleet is now a wholly-owned subsidiary of Saltchuk.
OSG, a provider of liquid bulk transportation services in the energy industry for crude oil and petroleum products primarily in the U.S. Flag markets, joins Saltchuk as its seventh business unit, becoming a member of its family of diversified freight transportation, marine service, and energy distribution companies.
The transaction, which was announced on May 20, was completed yesterday and “marks a significant development in the long history of OSG,” as OSG’s president and chief executive, Sam Norton said yesterday in a statement.
All shares of OSG common stock ceased trading yesterday, and will subsequently be delisted from the NYSE.
“With OSG, Saltchuk now numbers more than 8,500 people who share one thing in common: every day we strive to safely, responsibly, and reliably perform our services,” Saltchuk chairman Mark Tabbutt stated.
“As with our other businesses, OSG will remain standalone and independently managed,” he added.
Sam Norton, OSG’s president and chief executive Officer, noted: “Leadership at both of our companies sees the value of having our business lie within the Saltchuk family of companies, an organization committed to sustaining the important role of the domestic maritime industry within the USA.”
OSG lists 21 vessels in its fleet, including suezmax crude oil tankers, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.
