HOUSTON, Feb. 1, 2011 /PRNewswire/ -- Kirby Corporation
("Kirby") (NYSE: KEX) today announced the signing of an agreement
to purchase the ship bunkering operations of Enterprise Marine
Services LLC ("Enterprise") for approximately $53 million in cash. The asset purchase
will consist of 21 inland and offshore tank barges and 15 inland
towboats and offshore tugboats. Enterprise provides
transportation and delivery services for ship bunkers (engine fuel)
to cruise ships, container ships and freighters primarily in the
Miami, Port Everglades and
Cape Canaveral, Florida area, the
three largest cruise ship ports in the
United States, as well as Tampa,
Florida, Mobile, Alabama
and Houston, Texas. The
closing of the asset purchase is expected to occur in February 2011. Funding of the acquisition
will be through the use of Kirby's existing cash.
Joe Pyne, Kirby's Chief Executive
Officer, commented, "The purchase of the Enterprise ship bunkering
assets expands our marine transportation operating footprint in
Florida, as well as expands our
existing Houston ship bunkering
operation. The Enterprise tank barges are relatively new,
with an average age of seven years and the large majority of the
vessels are under time charter agreements ranging from two to three
years."
Mr. Pyne further stated, "We expect the ship bunkering
operations to be immediately accretive to Kirby's earnings.
Projected full year revenue from the asset purchase is
anticipated to be in the $30 to $35
million range, generating projected full year net earnings
in the $.05 to $.07 per share
range."
Kirby Corporation, based in Houston,
Texas, operates inland tank barges and towing vessels
transporting petrochemicals, black oil products, refined petroleum
products and agricultural chemicals throughout the United States' inland waterway system.
Kirby also owns and operates four ocean-going barge and tug
units transporting dry-bulk commodities in United States coastwise trade. Through
the diesel engine services segment, Kirby provides after-market
service for medium-speed and high-speed diesel engines and
reduction gears used in marine, power generation and railroad
applications.
Statements contained in this press release with respect to the
future are forward-looking statements. These statements
reflect management's reasonable judgement with respect to future
events. Forward-looking statements involve risks and
uncertainties. Actual results could differ materially from
those anticipated as a result of various factors, including
cyclical or other downturns in demand, significant pricing
competition, unanticipated additions to industry capacity, changes
in the Jones Act or in U.S. maritime policy and practice, fuel
costs, interest rates, weather conditions, and the timing,
magnitude and the number of acquisitions made by Kirby.
Forward-looking statements are based on currently available
information and Kirby assumes no obligation to update such
statements. A list of additional risk factors can be found in
Kirby's annual report on Form 10-K for the year ended December 31, 2009, filed with the Securities and
Exchange Commission.
SOURCE Kirby Corporation