Pangaea Logistics Solutions Ltd. (PANL), a leading global provider of comprehensive maritime logistics solutions, has announced a major expansion of its fleet through a definitive agreement to merge fifteen handy-size dry bulk vessels into its existing fleet. This strategic move will see Pangaea acquire the vessels from Strategic Shipping Inc. (SSI), a privately held company managed by M.T. Maritime Management (MTM).
The fifteen handy-size vessels, currently valued at approximately $295 million, are expected to significantly bolster Pangaea’s existing fleet of 26 supramax, ultramax, panamax, and post-panamax vessels. This acquisition will not only expand Pangaea’s operational capacity by nearly 60%, but also allow them to better serve the evolving cargo needs of their customers.
As part of the transaction, Pangaea will issue approximately 19.0 million shares of its common stock to SSI, representing roughly 29% of the Company’s outstanding common stock. This stock swap is based on the relative net asset values of SSI’s vessels and Pangaea’s existing fleet. The transaction is anticipated to close in the fourth quarter of 2024, subject to customary closing conditions and shareholder approval.
The acquisition is seen as a major strategic milestone for Pangaea, allowing them to offer a wider range of services and enhance their integrated shipping and port logistics models. The move is expected to improve overall fleet utilization and maximize profitability, while also positioning the company for continued future growth.
Pangaea is also welcoming a team of experienced dry bulk chartering and operations professionals from MTM, who will join Pangaea’s team, ensuring a smooth integration of the acquired fleet and business plans. The addition of MTM’s expertise is expected to contribute to Pangaea’s ongoing growth trajectory.
The transaction is expected to be accretive to Pangaea’s earnings as the dry bulk market benefits from a tight supply environment. This acquisition will enable Pangaea to maintain financial flexibility and provide ample capacity to pursue further strategic growth initiatives.
Both Pangaea and MTM are optimistic about the long-term benefits of this partnership. The combined fleet and expertise will allow them to better serve their existing customers and create a strong platform for future growth and synergy.
The acquisition highlights Pangaea’s commitment to expanding its operations and solidifying its position as a leader in the dry bulk logistics and transportation sector. This move reflects the company’s strategic vision to capitalize on the favorable market conditions and deliver sustainable returns to its shareholders.
