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International Shipholding to pay USD111m for United Ocean Services.

MANews-(C)2009-2012

12 October 2012 - US maritime transportation services provider International Shipholding Corporation (NYSE:ISH) said it would buy United Ocean Services LLC (UOS), a unit of dry bulk commodities transporter United Maritime Group LLC, in a cash deal worth some USD111m (EUR86m), subject to adjustments.

UOS, specialising in marine transportation services for dry bulk and break-bulk commodities in the domestic market, operates the countrya[euro](tm)s largest Flag Jones Act dry bulk fleet, including two handysize bulkers and four tug/barge units.

Its addition would bring scale to ISH and diversify its portfolio for the US Flag Jones Act dry bulk transportation market where it already has a solid position, the buyer said.

In line with ISHa[euro](tm)s strategy for growth in niche markets, this acquisition expands contracted revenues, as well as its customer relationships. ISH also expects the deal to contribute to its earnings and free cash flow, chairman and CEO Niels M Johnsen said, adding that the combination would increase ISH contracted revenues to account for 68% of the total annual result next year.

The buyer ensured commitments for debt financing from its core banks to help fund the transaction and is considering other financing sources as well. It expects to wrap up the deal in the fourth quarter of 2012, pending regulatory approvals and other customary conditions.

UOSa[euro](tm) fleet operates under long-term contracts with power utility Tampa Electric Co and concentrated phosphate and potash crop nutrients producer The Mosaic Company with which it has decades-long relationships. The company will become a subsidiary of ISH, operating separately, led by its current management.

DNB Markets Inc acted as advisor to ISH.Country: USASector: Water TransportTarget: United Ocean Services LLCBuyer: International Shipholding Corporation Vendor: United Maritime Group LLCDeal size in USD: 111mType: Corporate acquisitionFinancing: DebtStatus: AgreedBuyer advisor: DNB Markets Inc

.END.PUB430>PDOctober 12, 2012>JNMANEWS.PRICEDATENOT APPLICABLE.DAY

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Publication:M & A Navigator
Date:Oct 12, 2012
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