Under the agreement, Navios Maritime Acquisition’s shareholders obtained 0.1275 of a common unit of Navios Partners for each outstanding common share held.
This merger is said to have established the largest US publicly-listed shipping firm, comprising more than 140 ships with a combined deadweight of nearly 15 million tonnes and fleet value of $4.2bn.
The combined company will operate across three segments with 15 different kinds of vessel and be present in more than ten end markets.
Through the transaction, the company aims to achieve cost reductions, as well as an improved credit profile, by increasing cash retention for backing growth along with continued deleveraging.
It also intends to scale business with trades across all sizes and attain diversification to reduce ‘idiosyncratic segment volatility’ through the acquisition.
This merged entity, with a leverage ratio of about 35%, will be headed by the existing board of directors of Navios Partners.
The latest deal follows intra-group acquisitions of Navios Containers by Navios Partners in April and Navios Midstream by Navios Maritime Acquisition in December 2018.
Navios Maritime Acquisition chairwoman and CEO Angeliki Frangou said: “About one-third of our fleet will be in each of the dry bulk, containership and tanker segment.
“We believe that this combination should result in a stronger, more resilient entity, mitigating sector-specific cyclicality, and enabling us to capitalise on opportunities throughout the industry and provide even returns to our stakeholders across cycles.”