Saltchuk Acquiring Overseas Shipholding Group

Image: Saltchuk.

Seattle-based Saltchuk Resources announced May 20 that it has entered into an agreement to acquire Florida-based Overseas Shipholding Group, which provides liquid bulk transportation services for crude oil and petroleum in U.S. flag markets.

The acquisition cost is estimated at $950 million, according to Saltchuk.

The agreement terms, which secured unanimous approval from both companies’ Board of Directors, calls for Saltchuk to begin “a tender offer to acquire all outstanding shares of OSG it does not already own for $8.50 per share in cash.”

Once the transaction’s complete, OSG is expected to operate as a standalone business within Saltchuk as one of its freight transportation, marine service and energy distribution firms, according to the announcement.

“We are excited to enter into this new chapter together with Saltchuk, which has been a significant shareholder of OSG over the past several years and has a close understanding of our business,” OSG President and Chief Executive Officer Sam Norton said. “This transaction partners us with an organization that shares our values and focus on customers.”

Saltchuk Resources Chairman Mark Tabbutt said his company looks forward to welcoming OSG’s more than 1,000 members and “growing the enterprise through multi-generational investments.”

Saltchuk has about 7,500 employees and a consolidated annual revenue of about $5 billion.

“OSG, our nation’s leading domestic marine transporter of energy, has a strong cultural fit with Saltchuk and shares our commitment to operational safety, reliability and environmental stewardship,” Tabbutt said.

By Karen Robes Meeks