The total purchase price is approximately $575 million, including the proportional share of the newbuildings in the joint venture. Stolt-Nielsen secured funding through some of its main banks with a combination of bridge financing, secured term loans and available corporate funds. The transaction is subject to competition authority approval, with a decision expected before the end of next month.
Niels G Stolt-Nielsen, CEO of Stolt-Nielsen Limited, said: “The transaction covers the tonnage replacement needs of our current chemical tanker fleet for the next several years. While giving us some operational savings, it adds new trade routes to our service offering, thus expanding our presence on key tradelanes and enabling us to better serve the needs of our global customer base. With the expanded fleet we will be better positioned to serve our customers with the quality, reliability and flexibility they require from their logistical provider. Because Stolt Tankers and Jo Tankers share similar approaches to ship management and trading, we will be able to quickly, cost effectively and synergistically integrate these ships into our worldwide operations.”
The 13 chemical tankers consist of eight all stainless steel ships, ranging from 19,000 dwt to 38,000 dwt, and five ships with a combination of stainless steel and coated tanks, all of approximately 37,000 dwt. Six of the 13 ships have been on time charter to Stolt Tankers for the last five years. The newbuildings included in the transaction consist of eight all stainless steel eco-friendly ships of 33,000 dwt on order from New Times Shipbuilding in China, the first of which was delivered in early July. The remaining seven will be delivered in the second half of 2016 and in 2017.