KIRBY CORPORATION ANNOUNCES MERGER AGREEMENT WITH AFRAM LINES CO., LTD.
HOUSTON, April 5 /PRNewswire/ -- Kirby Corporation (AMEX: KEX) announced that it has signed an Agreement and Plan of Merger with AFRAM Lines (USA) Co., LTD. and its shareholder for the merger of AFRAM into AFRAM Carriers, Inc., a wholly owned subsidiary of Kirby, for an aggregate merger consideration of approximately $25,500,000, which includes a maximum earnout provision of $10 million earned and payable over a four year period. Under the terms of the Agreement and Plan of Merger, Kirby will issue, 1 million shares of its common stock in exchange for all of AFRAM's outstanding stock. Simultaneous with the merger, certain executives and shareholders of AFRAM will enter into agreements not to compete for which Carriers will make payments totaling $2 million. The closing of the transaction, expected in May, 1993, is subject to appropriate regulatory filings and approvals. AFRAM, located in Houston, is engaged in the worldwide transportation of dry bulk, container and palletized cargoes, primarily for the United States government. AFRAM's fleet consists of three U.S. flag container and break bulk ships which specialize in the transportation of United States government military and aid cargoes. AFRAM recorded total revenues of $39 million for the fiscal year ended June 30, 1992 and $27.7 million for the six months ended Dec. 31, 1992. Kirby reported total revenues of $269.5 million for the year ended Dec. 31, 1992. Kirby is engaged, through its subsidiaries, in marine transportation, operating U.S. flag vessels on the inland waterway system of the United States and in United States Coastwise and foreign trade, diesel repair and property and casualty insurance. -0- 04/05/93 /CONTACT: Steve Holcomb of Kirby Corporation, 713-629-9370/ (KEX)
CO: Kirby Corporation; AFRAM Lines Co., Ltd. ST: Texas IN: MAR SU: TNM
AH -- NY029 -- 2975 04/05/93 11:07 EDT
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|Date:||Apr 5, 1993|
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