Posts Categorized: Saltchuk
TOTE Group Announces Acquisition of Aqua Gulf as Part of New Logistics Focus
December 10, 2024
TOTE Group is excited to announce the acquisition of Aqua Gulf, a leading third-party logistics provider in Puerto Rico and the U.S.
For almost 60 years, Aqua Gulf has delivered cargo for its customers and the people and communities of the island.
“I am excited for Aqua Gulf to join TOTE Group companies. Given our long-term partnership with TOTE, this acquisition was a great opportunity for the future of Aqua Gulf. TOTE Group and Saltchuk are committed to ensuring our family culture and company would continue with the same focus and values that have allowed us to succeed, while also providing a platform for future growth,” said Aqua Gulf Founder Bobby Browne. “I know that we are in great hands by joining the Saltchuk family of companies as part of TOTE Group. This is the best place for Aqua Gulf as we begin the next chapter.”
Ensuring the company continues with the same focus and values, Aqua Gulf’s management will remain the same under this acquisition.
Aqua Gulf will join TOTE Group as part of TOTE Logistics, a new business area. In addition to Aqua Gulf, TOTE Group announced that Carlile, Naniq Global Logistics, and Shoreside Logistics will also join TOTE Logistics as of January 1, 2025. Together, these companies provide a breadth of services from Hawaii and Alaska across the mainland to Puerto Rico.
Mike Noone, Chief Operating Officer at TOTE Group, will assume the role of President of TOTE Logistics, overseeing these companies. Noone brings more than 30 years of experience in the domestic maritime and logistics industries to his new role.
“The addition of logistics services to the TOTE Group companies allows us to offer effective and efficient opportunities for those moving cargo throughout the U.S., particularly in the non-contiguous trades,” said Tim Nolan, President and CEO of TOTE Group. “Mike is the right person to oversee this new venture. His leadership and experience will ensure success for TOTE Logistics.”
Learn more about Aqua Gulf, Carlile, Naniq Global Logistics, and Shoreside Logistics.
Young Brothers Invests Over $45 Million to Enhance Reliability of Interisland Shipping
October 3, 2024
MORGAN CITY, LA – Last week, Young Brothers christened the Kalohi and Nāulu barges, marking a milestone in the more than $45 million investment to enhance the reliability and resilience of the interisland shipping services. Entering service in December 2024, the new barges will provide additional cargo capacity and were designed with advanced technology and features that make it safer and more efficient to load and unload cargo.
The addition of these state-of-the-art vessels – the first new barges in nearly 20 years – is a major step forward in modernizing Young Brothers’ fleet and ensures we are well-positioned to deliver the frequent and reliable interisland shipping service to power Hawai‘i’s economy and connect our island communities,” said Jay Ana, president of Young Brothers.
The Kalohi, a 286-foot-long barge, was designed to serve smaller ports like Kaunakakai (Moloka‘i) and Kaumalapau (Lāna‘i).
“As the only water carrier serving Lānaʻi and Moloka‘i, Young Brothers has a critical kuleana to these communities,” said Ana. “This investment in Kalohi reflects our deep commitment to enhancing the capacity and resiliency of our services moving what matters most for Lānaʻi and Moloka‘i.”
The Nāulu, a 365-foot-long barge, will be the largest vessel with the most cargo capacity in Young Brothers’ fleet. The versatile design enables Young Brothers to transport additional cargo during peak periods and realize significant operational efficiencies in the ease of loading and discharging cargo when volume returns to off peak levels. Nāulu will be homeported in Kawaihae (Hawai‘i Island) and will serve Young Brothers’ four larger ports.
Key Features of the Kalohi and Nāulu Barges
- Ballast technology raises or lowers the vessels in response to changing tidal and ocean conditions, increasing stability, safety and efficiency when loading and unloading cargo in the challenging ocean conditions often present at Young Brothers’ port locations.
- Additional cargo ramps across the barges, giving employees greater flexibility and enabling greater efficiency in safely loading and discharging cargo.
The vessels were custom-designed by Hockema Group, a Washington-based naval architecture firm, and built by Conrad Shipyard, a national leader in the construction of ships for commercial customers and the U.S. governments.
About Young Brothers
Young Brothers, LLC is Hawai‘i’s trusted interisland freight company. Founded more than 120 years ago, Young Brothers is responsible for transporting 100% of all ocean cargo that originates and ends in Hawaiʻi and is the only water carrier to serve Lāna‘i and Moloka‘i. The publicly-regulated company offers 12 weekly sailings between the ports of Nāwiliwili, Honolulu, Kaumalapau, Kaunakakai, Kahului, Kawaihae, and Hilo. More than 400 highly skilled employees move what matters most to Hawai‘i using state-of-the-art shoreside equipment and a fleet of eight barges and eight tugboats, including four fuel-efficient Kāpena-class tugs. Young Brothers is an independently managed subsidiary of Foss and part of the Saltchuk family of companies. For more information, visit www.youngbrothershawaii.com and connect via Facebook, Instagram, Twitter and LinkedIn.
About Conrad Shipyard
Conrad Shipyard, established in 1948 and headquartered in Morgan City, Louisiana, designs, builds and overhauls barges, dredges, and dredge support equipment, tugboats, ferries, drydocks, liftboats, offshore supply vessels and other steel products for both the commercial and government markets. The Company provides both repair and new construction services at its five shipyards located in southern Louisiana and Texas.
About Hockema Group
Hockema Group, Inc. is an independent, full service naval architecture firm primarily involved in commercial and government projects in various sectors of the marine industry. We provide naval architecture and marine engineering services for tugs, barges, commercial fishing vessels, dredgers, cargo vessels, workboats, passenger vessels and government/military service vessels.
Saltchuk Summer 2024 Newsletter
August 1, 2024
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Saltchuk Welcomes Overseas Shipholding Group to Its Family of Companies
July 10, 2024
Seattle, WA, Tampa, FL – Saltchuk Resources, Inc. (“Saltchuk”) today announced that it has successfully completed its previously announced tender offer to acquire all of the outstanding shares of common stock of Overseas Shipholding Group, Inc. (NYSE: OSG) not already owned by Saltchuk for a purchase price of $8.50 per share in cash, an enterprise value of approximately $950 million. The transaction closed this morning, and OSG is now a wholly-owned subsidiary of Saltchuk.
“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. We look forward to working alongside the OSG team as we move forward together.”
OSG joins Saltchuk as its seventh business unit, adding energy shipping to its diversified lines of business which include domestic shipping, international shipping, logistics, marine services, energy distribution, and air cargo.
Sam Norton, OSG’s President and Chief Executive Officer remarked, “The transaction with Saltchuk marks a significant development in the long history of OSG and we are very pleased that it has been successfully completed. 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. The entire team at OSG looks forward to our future together.”
The proposed transaction was announced May 20, 2024 and the expiration of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 was announced on June 26th.
Computershare Inc. and Computershare Trust Company, N.A., acting as joint depositary and paying agent for the tender, have advised that, as of the expiration of the tender offer, approximately 47,770,076 shares of OSG common stock were validly tendered and not validly withdrawn pursuant to the tender offer, representing approximately 66% of the issued and outstanding shares of OSG common stock, which percentage does not include Saltchuk’s holdings.
As a result of the completion of the transaction, prior to the opening of trading on the New York Stock Exchange on July 10, 2024, all shares of OSG common stock will cease trading, and the OSG shares will subsequently be delisted from NYSE and deregistered under the Securities Exchange Act of 1934, as amended.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (“OSG”) provides liquid bulk transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG’s 21 vessel U.S. Flag fleet consists of 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.
OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.
Contact
Susan Allan
Overseas Shipholding Group Enters Into a Definitive Agreement to Be Acquired by Saltchuk Resources, Inc.
May 20, 2024
Purchase Price of $8.50 per Share in Cash
Transaction Valued at $950 Million
Tampa, FL and Seattle, WA, May 20, 2024 – Overseas Shipholding Group, Inc. (“OSG” or the “Company”) (NYSE: OSG), a leading provider of liquid bulk transportation services in the energy industry for crude oil and petroleum products primarily in the U.S. Flag markets, and Saltchuk Resources, Inc. (“Saltchuk”), a privately owned family of diversified freight transportation, marine service, and energy distribution companies, today announced that they have entered into a definitive merger agreement pursuant to which Saltchuk has agreed to acquire OSG in a transaction that values the Company at an aggregate equity value of approximately $653 million and a total transaction value of $950 million.
Under the terms of the agreement, which has been unanimously approved by the Board of Directors of both companies, Saltchuk will commence a tender offer to acquire all outstanding shares of OSG it does not already own for $8.50 per share in cash. The purchase price represents a 61% premium to OSG’s 30-day volume-weighted average price on January 26, 2024, the last day of trading before Saltchuk disclosed its non-binding indication of interest, as well as a 44% premium to the January 26 closing price of OSG’s shares and a 36% premium to Saltchuk’s initial indicative price of $6.25 per share.
“We are pleased to have reached an agreement that reflects our leading Jones Act business, longstanding customer relationships, and the value created by the OSG team over the past several years,” said Douglas D. Wheat, Chairman of the OSG Board of Directors. “Following Saltchuk’s indication of interest to buy the Company at the end of January, the Board of Directors, with the assistance of external financial and legal advisors, undertook a review of the Company’s financial and strategic alternatives, including remaining a publicly held company. As part of that review, the Board conducted a comprehensive process in which it engaged with Saltchuk and approached and engaged with other potential transaction counterparties. Informed by its review and that process, the Board firmly believes Saltchuk’s increased offer represents compelling value to, and is in the best interest of, our shareholders not affiliated with Saltchuk.”
“We are excited to enter into this new chapter together with Saltchuk, which has been a significant shareholder of OSG over the past several years and has a close understanding of our business,” said Sam Norton, OSG’s President and Chief Executive Officer. “Saltchuk’s operating companies have distinguished themselves in their respective segments, and this transaction partners us with an organization that shares our values and focus on customers. We are thrilled to soon join the Saltchuk family of companies.”
Mark Tabbutt, Chairman of Saltchuk Resources, said: “OSG, our nation’s leading domestic marine transporter of energy, has a strong cultural fit with Saltchuk and shares our commitment to operational safety, reliability, and environmental stewardship. On behalf of the Saltchuk organization, we look forward to welcoming more than 1,000 members of the OSG team to our family of companies and growing the enterprise through multi-generational investments.”
Following the close of the transaction, OSG will operate as a standalone business unit within Saltchuk, becoming a member of its family of diversified freight transportation, marine service, and energy distribution companies.
The closing of the tender offer will be subject to customary closing conditions, including the expiration of the Hart-Scott-Rodino Act waiting period and the tender of shares representing, together with the shares already owned by Saltchuk, at least a majority of OSG’s outstanding shares of Class A common stock, and is expected to close in the next few months. Promptly following the successful completion of the tender offer, Saltchuk will acquire all remaining OSG shares not purchased in the tender offer through a second-step merger at the same price.
The transaction is not subject to a financing condition. It will be funded through a combination of committed debt financing and cash on hand.
Evercore is acting as exclusive financial advisor to OSG and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal advisor to OSG. K&L Gates LLP is acting as legal advisor to Saltchuk and BDT & MSD Partners is acting as Saltchuk’s financial advisor.
About Saltchuk Resources, Inc.
Saltchuk is a privately owned family of diversified freight transportation, marine service, and energy distribution companies, with consolidated annual revenue of approximately $5 billion and 7,500 employees. We believe in – and champion – the inherent value of our companies’ individual brands. The Corporate Home provides leadership and resources to our companies but not direct management of their operations. Saltchuk is a values-driven organization. We put safety first. We are reliable – we take care of our customers and conduct business with honesty and integrity. We are committed to each other, to protecting our environment, and to contributing to our communities in a work environment where anyone would be proud for their children to work. Additional information about Saltchuk, which is headquartered in Seattle, is available at www.saltchuk.com.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded company providing liquid bulk transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG’s U.S. Flag fleet consists of 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.
OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.
Cautionary Notice Regarding Forward-Looking Statements
Statements contained in this communication regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believes,” “estimates,” “expects,” “focused,” “continuing to,” “seeking,” “will” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These statements include those related to: the ability of the Company and Saltchuk to complete the transactions contemplated by the merger agreement, including the parties’ ability to satisfy the conditions to the consummation of the tender offer contemplated thereby and the other conditions set forth in the merger agreement. Because such statements deal with future events and are based on the Company’s and Saltchuk’s current expectations, they are subject to various risks and uncertainties, and actual results could differ materially from those described in or implied by the statements in this communication. These forward-looking statements are subject to risks and uncertainties, including, without limitation, risks and uncertainties associated with: the timing of the tender offer and the subsequent merger; uncertainties as to how many shares of the Company will be tendered into the tender offer; the risk that competing offers or acquisition proposals will be made; the possibility that various conditions to the consummation of the tender offer and the subsequent merger may not be satisfied or waived; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement and other risks and uncertainties affecting the Company, including those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2024, as amended by a filing with the SEC on March 25, 2024, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings and reports that the Company makes from time to time with the SEC. Except as may be required by law, neither the Company nor Saltchuk assumes any obligation to update these forward-looking statements, which speak only as of the date they are made, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Additional Information and Where to Find It
The tender offer for the outstanding shares of Class A common stock of the Company referenced in this communication has not yet commenced. This communication is for informational purposes only, is not a recommendation and is neither an offer to purchase nor a solicitation of an offer to sell shares of the Company or any other securities. This communication is also not a substitute for the tender offer materials that Saltchuk will file with the SEC upon commencement of the tender offer. At the time the tender offer is commenced, Saltchuk will file with the SEC a Tender Offer Statement on Schedule TO, and the Company will file with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9.
THE COMPANY’S SHAREHOLDERS ARE URGED TO READ THE TENDER OFFER STATEMENT (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS), THE SOLICITATION / RECOMMENDATION STATEMENT AND ALL OTHER FILINGS MADE BY THE COMPANY AND SALTCHUK WITH THE SEC in CONNECTION WITH THE TENDER OFFER WHEN SUCH DOCUMENTS BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE TENDER OFFER.
When filed, the Company’s stockholders and other investors can obtain the Tender Offer Statement, the Solicitation/Recommendation Statement and other filed documents for free at the SEC’s website at www.sec.gov. Copies of the documents filed with the SEC by the Company and Saltchuk will be available free of charge under “SEC Filings” on the Investors page of the Company’s website, www.osg.com. In addition, the Company’s stockholders may obtain free copies of the tender offer materials by contacting the information agent for the tender offer that will be named in the Offer to Purchase included in the Tender Offer Statement.
Contacts
Susan Allan, Overseas Shipholding Group, Inc.
(813) 209-0620