Kirby Corporation Completes Higman Marine Acquisition
Kirby Corporation, Houston, announced February 15 that it had completed the acquisition of Higman Marine Inc., after just announcing the deal 11 days earlier (WJ, February 12).
The total value of the transaction was approximately $419 million in cash before post-closing adjustments and transaction fees. The cash consideration was financed from the proceeds of a new issuance of senior notes, which closed on February 12. The new senior notes provided for $500 million in fixed rate debt at 4.2 percent with a 10-year maturity on March 1, 2028. The unused balance of the senior notes will be used for general corporate purposes, Kirby said in the announcement.
Higman’s marine transportation fleet consists of 159 inland tank barges with 4.8 million barrels of capacity, and 75 inland towboats that primarily transport petrochemicals, refined petroleum products, crude oil, natural gas condensate, and black oil on the Mississippi River System and Gulf Intracoastal Waterway. Higman’s tank barge fleet has an average age of approximately 7 years, and the towboats have an average age of approximately 8 years. Higman’s customers include large midstream and global integrated oil companies, many of which are current Kirby customers for inland tank barge services, Kirby said.