Braemar PLC (LSE:BMS) has boosted its presence in the US through the acquisition of Southport Maritime Inc, a deal which is expected to enhance earnings in the year to February 2024.
The international shipbroker pointed out that Southport is one of the highest volume US-based shipbroking tanker companies and is 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.
Braemar will pay $7.25mln in cash on completion, together with up to 1,888,942 ordinary shares, which will be delivered on the third anniversary of the transaction.
The share consideration is to be issued to the previous owners of the business and certain other employees, contingent on them remaining employed in the business for the full three-year period.
Southport's gross assets at completion are estimated to be $6.4mln. In the year to 31 December 2021, the company made a pre-tax profit of $1.1mln with profits averaging $1.5mln in the three years to 31 December 2021.
Braemar's new offices in West Palm Beach and Winter Park, Florida, will continue to be led by Michael Corey and Peter Tornaben from Southport.
In a statement, Tris Simmonds, Braemar COO, said: “The acquisition of Southport represents the next key component of our global growth plan. 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."