Camillo Eitzen & Co ASA (CECO) has signed a letter of intent for the acquisition of the chemical tanker company Fouquet Sacop S.A. The Fouquet Sacop fleet is comprised of 12 chemical tankers ranging in size from 3,900 to 19,000 dwt with an average age of 2.5 years. In addition, the company has two vessels on bareboat, and three newbuildings on order for delivery January, June and July 2007. The total aggregate purchase amount is EUR 219 million. The acquisition will be financed through debt and equity. The transaction is subject to satisfactory financial and legal due diligence. The transaction is expected to create synergies with the existing CECO chemical operations, and especially with Navale Française S.A.S. Furthermore, the transaction is also expected to be EPS accretive from first year of ownership. The advisor for the transaction was AMA Capital Partners.
If the Fouquet Sacop transaction materializes, CECO will control a fleet of 60 chemical tankers (including newbuildings). CECO is of the opinion that the chemical exposure within CECO has reached a size that makes it natural to evaluate a possible listing of the chemical segment as a separate stock-listed company.
Furthermore, as part of the financial strategy, CECO has sold one of its 13,000 dwt epoxy coated chemical carriers to a Japanese owner for USD 25 million. The vessel will be chartered back on a 10 year bareboat charter with purchase option.
Axel C. Eitzen Chief Executive Officer Tel: +47 67 11 98 00