Jones Act specialist financiers Maritime Partners move on Maersk Line’s US Marine Management (USMMI) contracting division shortly after acquiring American Shipping Co’s (AMSC) fleet of 10 tankers, reports Riviera.
About USMMI
USMMI, the AP Moller-Maersk subsidiary, currently operates five US-flagged vessels, including three owned tankers and one bareboat chartered tanker along with one owned maritime support vessel. The business has one O&M contract supporting US Army training watercraft in Japan.
In addition, USMMI was recently awarded a new operating agreement for the US Maritime Administration’s Tanker Security Programme. In connection with this award, USMMI has entered into an agreement to acquire another medium range tanker, which is expected to close Q4 2023.
Maritime Partners is a Jones Act specialist financier with extensive interests in the tug and workboat sectors.
“We’re excited to add USMMI to our portfolio,” Maritime Partners chief executive and co-founder Bick Brooks said. “USMMI’s long-term contracts with a strong customer base will nicely complement our existing portfolio of assets by providing diversification across counterparties, assets and end markets. We’re excited to partner with USMMI’s long-tenured and talented management team in the next phase of USMMI’s evolution.”
AMSC’s fleet
At the end of August, Maritime Partners struck a deal to buy AMSC’s fleet of 10 tankers.
Oslo-listed AMSC has a fleet of 11 vessels, and the 10 tankers going to Louisiana-based Maritime Partners consist of nine Handysize product tankers and one Handysize shuttle tanker. AMSC diversified its pure-play tanker vessel holdings in 2022 with the acquisition of Normand Maximus for US$158M from Maximus Ltd, reflecting improved conditions in the offshore oil and gas sector.
The 10-tanker sale will see Maritime Partners’ newly created subsidiary Project Merchant Acquisition buy out the shares of AMSC subsidiary American Tanker Holding Co. The deal is set to close in October 2023, pending approval by a two-thirds majority of AMSC’s shareholders. AMSC’s board of directors unanimously approved the sale, and AMSC said its two largest shareholders, Aker Capital and DNB Bank, holding 34.61% of the issued and outstanding shares, have “irrevocably and unconditionally agreed to vote all respective shares in favour of the transaction”.
Of the Maersk Line acquisition, Maritime Partners said, “The acquisition represents yet another significant transaction for Maritime Partners and its managed funds, bringing with it not only a management team with more than 30 years of government contracting experience, knowledge, and expertise, but also a significant opportunity for portfolio diversification through the addition of a new vessel class with new capabilities, a new maritime market to serve, and a new counterparty to the acquiring fund’s portfolio.”
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Source: Riviera
