Royal Boskalis Westminster (Boskalis) has signed an agreement to sell the equity stake held by the company in SAAM SMIT Towage to SAAM for $201m.
Under the terms of the agreement, the complete enterprise value of SAAM SMIT Towage is valued at $560m.
The towage joint venture (JV), which was formed between Boskalis and SAAM in 2014, covered the respective towage activities in Brazil, Panama, Mexico, and Canada at that time.
The JV has expanded its presence and realised efficiency savings and commercial synergies since then.
Boskalis’ latest decision to sell the stake in SAAM SMIT Towage comes following joint discussions between the company and SAAM on how to respond to the competitive market environment effectively.
The parties also came to the conclusion that the share sale would be beneficial for both of them.
Subject to the approval from regulatory agencies in the respective countries involved, the deal is expected to close in the second quarter of the year.
In a separate development, Boskalis has secured a $55m contract to transport a large number of modules from a fabrication yard in China for a North American LNG export facility.
Boskalis has a combined fleet of more than 400 ships and offers harbour towage services in around 90 ports in 36 countries across the globe through its JVs Keppel Smit Towage, SAAM SMIT Towage, and Kotug Smit Towage.
SAAM provides port operations and tug services in the Americas and is a logistics operator in nine South American countries, Mexico, and the US.