Navios Maritime Partners has taken another major step in consolidating the Angeliki Frangou-led shipping group’s fleet into a large diversified entity by carrying out an $835m fleet purchase.
The shipowner has purchased all 36 bulkers in the core fleet of its parent company, Navios Maritime Holdings, both New York-listed outfits said.
The transaction, which is the latest step in untangling what had once been a complex web of listed Navios Group companies, grows the Navios Partners fleet to 188 ships, in addition to 22 newbuildings.
It involves the assumption of nearly $442m in bank debt, bareboat charter obligations and financial leases.
Navios Partners takes on 26 owned vessels as well as 10 chartered-in ships with a total capacity of 3.9m dwt and an average age of 9.6 years.
The company highlighted that the addition of the Navios Holdings ship will increase its scale at an opportune time in the dry bulk market.
Navios Partners will have the third largest dry bulk fleet, and the second largest overall fleet, among US-listed shipping companies.
Frangou, who is the chief executive and a major shareholder in both listed companies, told TradeWinds in a June interview that the group reimagined itself during the Covid-19 pandemic, when company leaders realised that diversification brought resiliency.
That touched off a series of moves that culminated in October’s $827m merger of tanker owner Navios Maritime Acquisition into Navios Partners, which until then had been a bulker and container ship owner.
The moves had led Wall Street analysts to wonder whether a merger of the remaining two listed companies would be next.
Navios Holdings’ less-strong financial position also fuelled speculations of a deal. The Piraeus-headquartered company had been working to tackle looming debt maturities, but still had $80m due in August. That will now be repaid under the deal.
In addition to its 10% stake in Navios Partners, the company still controls Navios South American Logistics, which controls a fleet of its own operating from its Uruguay base.
“Going forward, the company plans to focus on growing Navios South American Logistics,” Navios Holdings said.
Navios Partners said the deal was negotiated and unanimously approved by its conflicts committee, and it was unanimously approved by its full board of directors.
Jefferies and S Goldman Advisors served as financial advisors to the conflicts committee. Fried, Frank, Harris, Shriver & Jacobson was legal advisor.
Navios Holdings set up a special committee to approve the deal. It had Latham & Watkins acted as legal advisor and Arctic Securities as financial advisor.
The deal will be completed in the third quarter of this year.
