In the third expansion move abroad it announces in less than two weeks, Braemar said on Monday it has agreed to buy US broker Southport Maritime for a total of about $14m.
The consideration for Southport’s 18-strong team specialising in spot tanker fixtures will be $7.25m in cash and up to nearly 1.9 million ordinary Braemar shares.
Those shares will be delivered three years after the transaction to Southport’s owners, as well as “certain other employees, contingent on them remaining employed in the business for the full three-year period,” according to a Braemar statement.
Braemar shares are trading at 297p meaning the additional payment is equal to about another $6.8m, bringing the total to around $14m.
Florida-based Southport was founded by Michael Corey and Peter Tornaben about 30 years ago.
In the statement, Braemar describes Southport as “one of the highest volume US-based shipbroking tanker companies… recognised as a leader for crude and refined products in the North American export market, as well as in the Latin American and Caribbean markets”.
Widening its footprint in the Americas has been a strategic Braemar goal ever since the London-listed broker decided to embark on an expansion course in November 2021.
“The acquisition of Southport represents the next key component of our global growth plan,” Braemar chief operating officer Tris Simmonds said.
“There are significant growth opportunities in the North and South American markets and the team at Southport will play a key part in helping the Group deliver on that potential,” Simmonds added.
Braemar expects the Southport acquisition to start boosting its own profit from next year. In 2021, the US company booked a before-tax profit of $1.1m in 2021.
Another jewel in the crown
Earlier in December, Braemar hired several tanker brokers from Spain’s Medco Shipbrokers and set up a corporate finance desk in its Athens office.
The Southport acquisition leads to Braemar featuring new offices in West Palm Beach and Winter Park, Florida, which will continue to be led by Corey and Tornaben.
“For us, this is the logical step in continuing Southport's core mission,” its two co-founders said.
“Being under the Braemar umbrella will enable our team to bring our boutique service to the next level across a significantly larger global platform,” they added.
Braemar’s new tanker desk in Florida is to work in tandem with Braemar's existing tanker desks in London, Singapore, Madrid, Houston, and Geneva.
