International Seaways Completes Merger With Diamond S Shipping
International Seaways, Inc., one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, announced today the completion of its previously announced merger with Diamond S Shipping Inc. (NYSE: DSSI) (“Diamond S”). The combined company will continue to operate as International Seaways and trade on the New York Stock Exchange under the symbol INSW. The Company expects to achieve cost synergies in excess of $23 million and revenue synergies of $9 million, which are expected to be fully realizable within 2022.
Following the completion of the merger, International Seaways is now the second largest U.S.-listed tanker company by vessel count with over 100 vessels and the third largest by deadweight (“dwt”), aggregating approximately 11.3 million dwt. The merger enhances INSW’s capabilities in both the crude and product markets and creates “power alleys” for INSW in the large crude—VLCC and Suezmax—and LR1/Panamax and MR markets.
In accordance with the terms of the Merger Agreement, which was approved by INSW and Diamond S Shareholders at their respective special meetings held on July 13, 2021, pre-merger INSW shareholders own approximately 55.75% of the equity of the combined company and former DSSI stockholders own approximately 44.25%. On July 15, 2021, pre-merger INSW shareholders of record as of July 14, 2021, received a special dividend of $1.12 per share.
“We are pleased to complete this transformational and highly accretive transaction, solidifying our position as a diversified tanker sector bellwether,” said Lois Zabrocky, INSW’s President and CEO. “With enhanced scale, financial strength and commercial expertise, we have markedly strengthened our position to capitalize on favorable long-term industry fundamentals in both the crude and product markets. As we integrate the combined company, our focus will remain on further executing our balanced and accretive capital allocation strategy, while upholding our best-in-class ESG track record and continuing to deliver safe and efficient transportation of energy cargoes for our world-class customers. We welcome the newest members of our team and look forward to working together to create lasting value for all stakeholders.”
Source: International Seaways Inc.