Euroseas Ltd has acquired four vessels from companies controlled by Synergy Holdings Limited in a deal worth US$40M
In addition to acquiring the four 4,253 20 ft-equivalent units (TEU) containerships, built in South Korea, Euroseas will also assume the charters the vessels are currently under. It has also agreed to acquire certain management services of Synergy Marine Limited for the next three years.
One of the vessels has already been delivered, with the remaining three expected over the next week, subject to certain closing conditions being met.
Euroseas expects the addition of the four vessels will add in excess of US$5M to its EBITDA over the next 12 months and reduce the average age of its fleet by approximately two years. The company’s fleet will expand to 19 units, all but one of which are feeder and intermediate containerships.
In a related move, chairman of Synergy Holdings Limited, Andreas Papathomas has joined the Board of Directors of Euroseas Ltd.
Commenting on the deal, chairman and CEO of Euroseas, Aristides Pittas, said: “This is a significant transaction for the company as it takes a meaningful presence in the Panamax markets.”
Separately, Euroseas says its vessel MV Akinada Bridge, currently drydocked, faces delays in completing work which resulted in the loss of a previously secured charter.
The company has replaced the charter with another of a similar rate and duration (three to five months) which is expected to commence in early December 2019, when the remaining work on the vessel is expected to be completed.