KKR and Borealis Maritime acquire nine ships

Global investment firm KKR and Borealis Maritime have acquired nine feeder container vessels in an undisclosed transaction.

Details of the sale process have not been not disclosed, however, the deal was coordinated by Commerzbank. The vessels were owned by a number of German KG funds.

KKR Special Situations team member Brian Dillard said: “We are pleased to acquire these nine vessels with Borealis and we are actively looking for attractive investments in shipping, particularly where we can provide a solution for lenders looking to reduce their exposure.”

“Our partnership with KKR has been well-timed to deploy capital during what we believe will prove to be a low cycle in the shipping industry.”

Borealis Maritime is a privately owned and independent maritime shipping company in London. The companies started a joint venture named Embarcadero Maritime in 2013 in order to invest in distressed shipping assets.

Since then, Embarcadero Maritime has acquired 27 vessels, ploughing more than $100m into its business and currently has a mix of chemical tankers, feeder container vessels and small LPG vessels.

Borealis Maritime CEO Christoph Toepfer stated: “Our partnership with KKR has been well-timed to deploy capital during what we believe will prove to be a low cycle in the shipping industry.

“We have been able to grow our fleet significantly and together with KKR are offering lenders feasible solutions to prior lending engagements.”

KKR supports these acquisitions with the help of its managed funds and accounts and special situation funds, which offer a fair capital to support its business.

Overcapacity and low vessel earnings continue to have a significant impact on several sectors of the shipping industry.