Braemar Plc has acquired USA based shipbroker, Southport Maritime. The consideration comprises $7.25m in cash paid on completion, together with up to 1,888,942 Braemar Ordinary Shares, which will be delivered on the third anniversary of the transaction. The share consideration is to be issued to the previous owners of the business and certain other employees, contingent on them remaining employed in the business for the full three-year period.
About Braemar Plc
Braemar Plc is a leading international shipbroker and provider of expert investment, chartering, and risk management advice to the shipping and energy markets. Enhancing the Group’s coverage in the Americas has been an important strategic goal of Braemar since the board launched its growth agenda in November 2021. Southport Maritime is one of the highest volume US-based shipbroking tanker companies. They are recognised as a leader for crude and refined products in the North American export market, as well as in the Latin American and Caribbean markets.
With a particular focus on spot tanker fixtures, Southport’s 18-strong team has a reputation for high performance within the industry. Since it was founded, Southport Maritime has enabled its clients to transport billions of barrels of liquid petroleum and oil products worldwide. The Southport Maritime team complements Braemar’s existing Tanker desks in London, Singapore, Madrid, Houston, and Geneva, as well as significantly enhancing Braemar’s presence in the Americas.
Augmenting Regional Coverage
The new offices augment the Group’s existing regional coverage in Houston and Sao Paulo, and these combined locations provide the ideal platform for the Group to penetrate the North and South American markets and add further scale to the Group’s activities.
The transaction is expected to be earnings enhancing for the year ending February 2024. Southport’s gross assets at completion are estimated to be $6.4m. Tris Simmonds, Braemar COO, said, “The acquisition of Southport represents the next key component of our global growth plan.” Michael Corey and Peter Tornaben, co-founders of Southport Maritime, said, “When we started this company thirty years ago, our primary objective was to provide our customers with timely dissemination of market intelligence and assist them in monetizing that information…”
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