Pangaea completes the acquisition of Nordic Bulk Partners

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Pangaea Logistics Solutions, a global provider of comprehensive maritime logistics solutions, today announced a definitive agreement to purchase the remaining 50% equity ownership of its consolidated subsidiary, Nordic Bulk Partners LLC, from HS Nordic LLC, for $17.2 million in cash. Nordic Bulk Partners LLC was established in 2019 as a joint venture to construct four Ice Class 1A Post-Panamax dry bulk vessels. The transaction is expected to be completed by November 1, 2024 subject to customary closing terms and conditions.

Upon the completion of the transaction, Pangea will own 100% of the equity in Nordic Bulk Partners. The terms of the Nordic Bulk Partners operating agreement include ownership put and call provisions, which have been negotiated and exercised a year earlier than originally stipulated. HS Nordic’s 50% equity ownership was recorded on Pangaea’s balance sheet as of June 30, 2024 as a long term liability of $16.6 million, which will be extinguished as a result of this purchase

“This strategic move to take full ownership of these four modern dry bulk vessels further consolidates our fleet of niche Ice Class 1A vessels, cleans up our balance sheet, and improves our operating cash generation” stated Mark Filanowski, Pangaea’s Chief Executive Officer. “We continue to pursue our strategic initiative of investing in our fleet of owned vessels, while taking advantage of the favorable macro backdrop in the dry bulk market to unlock incremental net asset value and maximize future returns on our owned fleet. We thank Hudson Structured Capital Management for their partnership in the expansion of our ice class fleet, which has been instrumental since the delivery of the vessels in 2021.”