Bulker, tanker and bunkering company Delta Corp is set to list on the US Nasdaq following a merger with listed company Coffee Holding.
The deal will see the two companies become wholly owned subsidiaries of a newly created holding company incorporated under the laws of the Cayman Islands, Delta Corp Holdings Limited.
Following the closing of the transactions, which is expected to take place in the first quarter of 2023, the combined company expects to trade on Nasdaq under the ticker symbol DLOG.
The new company will be led by the Delta management team led by chief executive Mudit Paliwal, non-executive chairman Peter Shaerf and chief financial officer Joseph Nelson.
The combined public company will have an implied diluted pro forma enterprise value of approximately $655m.
“The transaction will enable us to accelerate the expansion of our business and enter new markets that have synergies with our core businesses,” said Paliwal.
“This includes a broadening of our energy transition, sustainability, and environmental stewardship related service offerings.”
Peter Shaerf said Delta has been able to capitalise on the global commodity revolution as a leading asset-light, third-party logistics provider.
“Our growth has historically come from market share capture and strategic, bolt-on acquisitions funded primarily through internally generated cash flows. This has kept our balance sheet strong and with no debt,” he said.
“We anticipate continuing this approach to growth in the years ahead while making strategic investments in new technologies to increase operational efficiency, reduce risk and/or enhance our decision making, enabling us to accelerate our growth into the future.”
Maxim Group is serving as the exclusive financial advisor to Delta. Ellenoff Grossman & Schole is serving as counsel to Delta. Lowenstein Sandler is serving as counsel to Coffee Holding.
Delta Corp, which is headquartered in London, was established in 2019 as a “customer-centric” logistic and supply chain platform, providing transportation of bulk commodities, asset management and fuel and lubricant oil supply services.
In the dry bulk space, the company focuses on the non-cape segment using a blended chartering strategy that utilises a multi-prong approach of time charters, arbitrage of cargo and ships and FFA’s to hedge exposure.
Delta is also active in the tanker market and claims to be “actively engaged” in chartering of MRs, LR1s, aframax and suezmax vessels.
The company is also a physical supplier and trader of marine fuels and lubricants with physical operations in the UK and Rotterdam.
