COVINGTON— Hornbeck Offshore Services Inc. is selling a small tug and barge fleet to Genesis Marine LLC of Houston for $230 million cash. The fleet consists of nine ocean-going tugs and nine double-hulled tank barges.
Genesis paid a $23 million deposit when the final agreement was reached, said Todd M. Hornbeck, the company’s chairman, president and CEO.
Both companies posted notices about the deal on their websites Monday.
Thanks to recovery in the petroleum products distribution market since the financial collapse of 2008, Hornbeck was able to get “what we believe to be a very fair price — above our original investment in these assets,” Hornbeck said.
Genesis described the tugs as modern and efficient, and said eight have been rebuilt since 2005. Eight of the barges are equipped with vapor recovery, it said.
“This acquisition complements and further integrates our existing operations, including our Genesis Marine inland barge business (comprised of 50 barges and 23 push/tow boats), our crude oil and heavy refined products storage and blending terminals as well as our crude oil pipeline systems,” Genesis said.
The agreement must be approved by regulators. It is anticipated to close by the end of the third quarter, the companies said.
Genesis said Hornbeck’s fleet carries crude oil and refined petroleum products, mainly to refineries and storage terminals along the Gulf Coast, Eastern Seaboard, Great Lakes and Caribbean.
“We are very pleased to have the opportunity to expand our marine transportation capabilities through the acquisition of these ocean-going vessels which complement our inland waterway operations as well as our other crude oil and heavy refined product assets,” said Grant Sims, CEO of Genesis. “There is a significant overlap in existing customers, and we look forward to working with Hornbeck to facilitate a seamless transition for our collective customers and employees.”
Hornbeck carries supplies to offshore oil and gas rigs and hauls petroleum products over short distances in the Gulf of Mexico and northeastern United States. Its 76 vessels primarily serve the energy industry; it has ordered 23 more vessels to serve the exploration and production business for delivery through 2016.