Two SIU-contracted companies have jointly announced a merger agreement in which Overseas Shipholding Group (OSG) will acquire Maritrans. SIU contracts remain fully in place and all SIU jobs are maintained.The announcement came in late September.
“From our perspective, the merger is noteworthy but it doesn’t change our SIU agreements or our shipboard jobs,” noted SIU Executive Vice President Augie Tellez. “It should be a seamless transaction where crew members are concerned.”
OSG and Maritrans described the acquisition as combining two fleets with complementary strengths in different trade routes, thereby diversifying OSG’s U.S.-flag presence “with the ability to offer expanded services to current and future customers of both companies. The addition of Maritrans’ fleet of 11 articulated tug barges (ATBs), five product carriers (two of which have been redeployed to transport grain) and three large ATBs under construction will complement OSG’s U.S.-flag fleet of seven operating vessels and 10 new build product carriers. The combination will expand OSG’s market presence in the U.S. Gulf coast, Florida and East Coast trades and add lightering operations along the U.S. East Coast. It is expected that Maritrans’ vessel construction program, which involves ATBs to be used in lightering operations, will allow OSG to use a substantial portion of its Capital Construction Fund.”
“The strategic fit of Maritrans within OSG’s diversified portfolio of assets will broaden our service offerings to customers in the Jones Act market,” said Morten Arntzen, president and CEO of OSG. “Additionally, the lightering business in Delaware Bay and the addition of new customers in the complementary ATB Gulf of Mexico and Florida short-haul trade will contribute meaningfully to our contractual base of business. Most importantly, however, are Maritrans’ strong commercial reputation and its team of talented personnel which, when combined with our U.S.-flag operation, will give us the platform to support our 10 Jones Act product carrier new builds, as well as future growth opportunities in U.S. coastal trades.”
Jonathan P. Whitworth, CEO of Maritrans, commented, “We are very excited about the transaction with OSG and the benefits it brings to shareholders, customers and employees…. The financial strength that OSG brings to the combination will enhance our ability to compete. We look forward to a successful integration and to becoming the newest member of the OSG family.”
The transaction is valued at approximately $455 million.
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