Euroseas Ltd has acquired four vessels from companies controlled by Synergy Holdings Limited in a deal worth US$40 M, says an article published in Riviera Maritime Media.
Euroseas’s acquisition
In addition to acquiring the four 4,253 20 ft-equivalent units (TEU) containerships, built in South Korea, Euroseas will also assume the charters the vessels are currently under.
- It has also agreed to acquire certain management services of Synergy Marine Limited for the next three years.
- One of the vessels has already been delivered, with the remaining three expected over the next week, subject to certain closing conditions being met.
- Euroseas expects the addition of the four vessels will add in excess of US$5M to its EBITDA over the next 12 months.
- This is to reduce the average age of its fleet by approximately two years.
- The company’s fleet will expand to 19 units, all but one of which are feeder and intermediate containerships.
A meaningful presence
In a related move, chairman of Synergy Holdings Limited, Andreas Papathomas has joined the Board of Directors of Euroseas Ltd.
Commenting on the deal, chairman and CEO of Euroseas, Aristides Pittas, said: “This is a significant transaction for the company as it takes a meaningful presence in the Panamax markets.”
Delay faced
Separately, Euroseas says its vessel MV Akinada Bridge, currently drydocked, faces delays in completing work which resulted in the loss of a previously secured charter.
The company has replaced the charter with another of a similar rate and duration (three to five months) which is expected to commence in early December 2019, the remaining work on the vessel is expected to be completed.
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Source: Riviera Maritime Media
