Pangaea Takes Full Control of Nordic Bulk Partners
Pangaea Logistics Solutions Ltd., announced a definitive agreement to purchase the remaining 50% equity ownership of its consolidated subsidiary, Nordic Bulk Partners LLC, from HS Nordic LLC, for $17.2 million in cash.
The deal is expected to be completed by November 1, 2024. It will see Pangea own 100% of the equity in Nordic Bulk Partners, a joint venture established in 2019 to construct four Ice Class 1A Post-Panamax dry bulk vessels.
The terms of the agreement include ownership put and call provisions, which have been negotiated and exercised a year earlier than originally stipulated. HS Nordic's 50% equity ownership was recorded on Pangaea's balance sheet as of June 30, 2024 as a long term liability of $16.6 million, which will be extinguished as a result of this purchase
"This strategic move to take full ownership of these four modern dry bulk vessels further consolidates our fleet of niche Ice Class 1A vessels, cleans up our balance sheet, and improves our operating cash generation," said Mark Filanowski, Pangaea's CEO. "We continue to pursue our strategic initiative of investing in our fleet of owned vessels, while taking advantage of the favorable macro backdrop in the dry bulk market to unlock incremental net asset value and maximize future returns on our owned fleet. We thank Hudson Structured Capital Management for their partnership in the expansion of our ice class fleet, which has been instrumental since the delivery of the vessels in 2021."