Boskalis sells SAAM Towage stake for $201m

Royal Boskalis Westminster (Boskalis) has signed an agreement with the Chilean logistic company SAAM S to sell its equity stake in SAAM SMIT Towage. Under the terms of the agreement, the total (100%) enterprise value of SAAM SMIT Towage is valued at $560m. 

The transaction is expected to close in the second quarter of 2019 and the transaction is valued at $201m.

The towage joint venture between Boskalis and SAAM was formed in 2014 which at the time covered the respective towage activities in Brazil, Panama, Mexico and Canada. Since then, the joint venture has successfully expanded its presence and realised efficiency savings and commercial synergies. 

As a result of the deal, SAAM will acquire 49% of the business in Mexico, Panama and Canada and 50% in Brazil. In aggregate, these operations reported revenue of $205m in 2018.

“The partnership with Boskalis has been very productive: In just over four years, we have grown the business in Canada and improved our position in Brazil. Today we want to take another step forward. Since the towage area is at the core of our business, SAAM can play an important role in consolidating and growing this industry,” said SAAM’s ceo, Macario Valdés.

He added, “We perform over 100,000 towage maneuvers each year in the 60 plus ports where we operate. Every five minutes we begin a new maneuver somewhere in the Americas. This is a business we want to strengthen and develop for the future,” he commented. 

The joint operations boast a total fleet of 106 tugs operating in 30 ports in four countries, including three of the five most important terminals in the Americas: Santos (Brazil) and Colón and Balboa (Panama).

Chile-based SAAM provides international trade services through three business divisions: Port Terminals, Towage and Logistics. With 57 years in business, SAAM has operations in 12 countries in North, Central and South America.

Posted 12 February 2019

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Michele Labrut

Americas Correspondent, Seatrade Maritime News

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