Bulk Handling to buy United Bulk Terminal

14 May 2012 (Last Updated May 14th, 2012 18:30)

Bulk Handling USA, an affiliate of Oiltanking Holding Americas, has signed an agreement to acquire US United Bulk Terminal (UBT), a subsidiary of United Maritime Group (UMG).

Bulk Handling USA, an affiliate of Oiltanking Holding Americas, has signed an agreement to acquire US United Bulk Terminal (UBT), a subsidiary of United Maritime Group (UMG).

Neither company has disclosed the value of the deal, but according to a filing by the UMG with the US Securities and Exchange Commission (SEC), the aggregate purchase price is expected to be about $215m in cash.

UBT is a dry bulk export terminal on the Lower Mississippi River, with a throughput capacity of 11 million tonnes per year and is considered a critical logistic link in coal and petroleum coke international supply chain.

UMG chairman and chief executive officer Steven Green said that in the four years since acquiring UBT, the company has developed the business into an independent provider of terminal and transfer services to the domestic and export markets for coal and petroleum coke.

"Oiltanking is a leading provider of terminal and storage services for liquid petroleum and chemical products globally, and is an excellent successor to continue to grow and enhance UBT’s position in the market," Green said.

The deal is expected to close in the second quarter of this year, subject to regulatory approval.

UMG subsidiaries operate in the dry bulk transportation and logistics industry, which include US United Ocean Services (UOS), and US United Barge Lines (UBL), an inland hopper barge and boat fleet.

In April this year, UMG had entered into an agreement to sell UBL to Ingram Barge Company of Nashville, Tennessee, US.

Oiltanking is an independent tank storage provider for petroleum products, chemicals and gases that owns and operates 72 terminals in 22 countries.