Kirby Corp Acquires Stewart & Stevenson
Houston based tank barge operator Kirby Corporation said it has signed an agreement to acquire the assets and businesses of Stewart & Stevenson LLC for approximately $710 million. The agreement was signed on June 13 by the companies’ executive chairmen, Joseph H. Pyne of Kirby Corporation and Hushang Ansary of Stewart & Stevenson. Kirby said the purchase will be funded through its revolving credit facility and common stock valued at approximately $355 million. Stewart & Stevenson, also based in Houston, is a subsidiary of the Houston-based Parman Capital Group.
Kirby Corp. Announces Record 3Q Results
Record 2014 third quarter earnings per share of $1.34 compared with $1.21 in the 2013 third quarter, which included a $0.08 benefit due to the reduction of the United earnout liability. Kirby Corporation announced record net earnings attributable to Kirby for the third quarter ended September 30, 2014 of $76.7 million, or $1.34 per share, compared with $69.1 million, or $1.21 per share, for the 2013 third quarter, which included a $0.08 per share benefit due to the reduction of the United earnout liability.
Maritime Mergers and Acquisitions: Oil & Gas to the Forefront
Maritime oil and gas business segments have exhibited mixed results in the past 12 months. In the United States, offshore business is slowly recovering from the devastating Macondo spill that resulted in an exodus of drilling assets to foreign shores. Service and equipment providers are showing cautious optimism as the number of drill rigs under contract has risen substantially, along with day rates. In this report, Figure 1 shows the recovery in the active Gulf of Mexico rig count to pre-Macondo levels, with the point of the accident circled in green.