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Saltchuk Announces Acquisition of Overseas Shipholding for $950 Million in Cash

  • May 20, 2024

OSG Merger

Bulk liquid transporter Overseas Shipholding Group, Inc. (OSG) entered into a definitive merger agreement on May 20, 2024, to be acquired by Saltchuk Resources in an all-cash deal valued at about $950 million.

As per the agreement, Saltchuk will commence a tender offer to acquire all outstanding shares of the bulk carrier for $8.50 per share in cash, representing a premium of 23.91% from the stock’s last close.

In January, Overseas Shipholding Group announced that Saltchuk had proposed an acquisition at $6.25 per share.

Saltchuk Resources is a privately owned group of diversified freight transportation, marine service, and energy distribution companies. It owned 21% of Overseas Shipholding when it announced its proposal for acquisition.

Overseas Shipholding’s EV/EBITDA (TTM) ratio is 6.57, above the sector median of 6.42.

The deal will be funded through debt financing and cash on hand and is expected to close in the next few months.

To delve into more details regarding this transaction, please visit the Deal Metrics page here:

Deal Metrics for the acquisition of Overseas Shipholding Group, Inc. (OSG) by Saltchuk Resources, Inc.

Editor’s Note: Baranjot Kaur contributed to this article

Disclaimer: Prior to buying or selling any securities mentioned in this article, it is advised that you perform your own due diligence. The accuracy and completeness of the data or content provided in this article are not warranted.