Seacor Holdings will soon become a privately owned company in a $1bn share transaction, after three decades of trading on the New York Stock Exchange.
The Florida-based diversified owner announced on Monday that it has agreed to be acquired by an affiliate of New York private equity firm American Industrial Partners (AIP).
AIP will begin a tender offer to acquire all outstanding Seacor shares for $41.50 per share in cash.
This represents a premium of about 14% to Seacor's closing stock price on Friday and a premium of about 31% over the 90-calendar-day volume-weighted average price.
The stock, which trades under the ticker symbol CKH, gained 13.9% to $41.35 in the minutes leading up to Monday's opening bell on Wall Street.
"This transaction provides an immediate and meaningful premium to shareholders and will accelerate Seacor’s strategic plan by giving the company access to additional growth capital and financial flexibility that will benefit its customers and employees in the future," a company spokesman told TradeWinds.
"Additionally, AIP has demonstrated success investing in and growing industrial and marine businesses like Seacor's and has direct experience with companies operating in the Jones Act marine space.
"Their investment and operational expertise will position Seacor for long-term success as it pursues growth opportunities via consolidation, adding working assets, or investing in lines of business that augment existing operations."
Seacor owns and manages a variety of assets that serve multiple maritime sectors through subsidiaries Seabulk, Waterman, Cleancor, Seacor Island Lines, SCF and Witt O'Brien's.
Seacor's board has approved the acquisition and recommended that stockholders tender their shares in the offer.
Chief executive and executive chairman Fabrikant, 75, who co-founded Seacor in 1989 in a buyout of Nicor Marine, owns 7% of Seacor.
Calls to AIP regarding the acquisition, expected to close in the first quarter of 2021, were not immediately returned.
“This transaction is an exciting next step for Seacor, delivering stockholders an immediate and meaningful premium for their shares and providing the Company with access to additional growth capital and financial flexibility,” Fabrikant said in a statement.
'Ideal partner'
“AIP is an ideal partner for Seacor that recognises the value of its unique, diversified platform and management looks forward to leveraging their investment and operational expertise in pursuing industry consolidation and other growth opportunities across all our businesses.
“AIP has demonstrated success investing in and growing industrial, services, and marine businesses, and I am confident our employees and customers will greatly benefit from this partnership.”
Once the deal is finalised, Fabrikant will step down from his executive positions. His son, chief operating officer Eric Fabrikant, will become chief executive.
AIP describes itself as “an operationally oriented middle-market private equity firm that makes control investments in industrial businesses serving domestic and global markets”.
The firm, founded in 1989, “invests in all forms of corporate divestitures, management buyouts, recapitalisations, and going-private transactions of established businesses” with revenue ranging from $300m to $1bn.
Rand Logistics, an AIP affiliate that provides dry bulk shipping services throughout the Great Lakes region, bought American Steamship Co from GATX Corp.
“We are thrilled to partner with Seacor’s talented management team and welcome its family of businesses and employees into the American Industrial Partners portfolio,” AIP partner Jason Perri said in a statement.
“Seacor has demonstrated a unique combination of proven investment acumen and a track record as a first-class operator of businesses across various end markets, including the Jones Act marine space.
"These attributes align perfectly with AIP’s core skill sets and mission, and we are excited to help usher Seacor into its next phase of growth.”
