Kirby Closes Acquisition of Higman Marine
Kirby Corporation has announced the completion of the acquisition of Higman Marine, Inc. and its affiliated companies (“Higman”), an operator of tank barges and towboats participating in the inland tank barge transportation industry in the United States.
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, 2018. The new senior notes provided for $500 million in fixed rate debt at 4.2% with a 10-year maturity on March 1, 2028. The unused balance of the senior notes will be used for general corporate purposes.
Higman’s marine transportation fleet consists of 159 inland tank barges with 4.8 million barrels of capacity, and 75 inland towboats which 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.