Pangaea Logistics Solutions Ltd. announced today that it has acquired an additional one-third equity interest in its partially-owned consolidated subsidiary Nordic Bulk Holding Company Ltd. from one of NBHC's current shareholders. The acquisition increases Pangaea's equity interest in NBHC to 66.7%. NBHC owns six modern 1-A ice-class panamax bulk vessels which are time chartered to and operated by Pangaea's wholly-owned subsidiary, Nordic Bulk Carriers, in its contractual ice and Arctic businesses and in spot markets. The purchase price of the equity interest was $22.5 million, with a $15 million cash payment upon closing and three annual payments of $2.5 million over the next three years.
"We are extremely pleased to be able to acquire an additional interest in these modern, high quality ships built at Oshima Shipyard in Japan," said Ed Coll, Pangaea's Chief Executive Officer. "Our ice and Arctic businesses were developed for these ships, which we know very well, having operated them from newbuilding delivery. Our additional ownership position in the six ships will provide additional premium earnings to our bottom line, and helps to cement our position as the leading worldwide operator of large ice class ships. We also look forward to our four newbuilding 1-A ice class post-panamax ships expected to be delivered in 2021. This will give us twelve modern and efficient ice-class ships ready to serve our customers' transport and logistics needs in difficult locations, with an average fleet age of four years and a total cargo capacity of almost one million metric tons. All of our ships meet or exceed strict regulatory and environmental requirements, but our newest ships will transport more cargo with an even smaller footprint, and are built with Tier III engines to comply with the strictest air standards."
About Pangaea Logistics Solutions Ltd.
Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.
