The company’s boards have approved the deal under which INSW and Diamond S shareholders will own approximately 55.75% and 44.25% of the combined company, respectively.
The merger of Diamond S with INSW would create the second largest US-listed tanker company by vessel count and the third largest by deadweight.
On a pro forma basis, the combined company will have 100 vessels of 11m dwt, shipping revenues of over $1bn over 2,200 employees, and an enterprise value of approximately $2bn.
The fleet comprises VLCCs, suezmaxes, LR1/panamax and MR tankers and the two companies aim to realise estimated annual cost synergies in excess of $23m and revenue synergies, of $9m which are expected to be fully realised within 2022.
Douglas Wheat, Lois Zabrocky and Jeffrey Pribor will continue to serve as the Chairman of the Board of Directors, CEO and CFO of INSW, respectively, and the current CEO of Diamond S, Craig Stevenson Jr., will join the Board of Directors of INSW, and also act as a special advisor to the CEO for a 6-month period to ensure a smooth transition.
“We are excited to enter into this transformational transaction and create an industry bellwether,” said Zabrocky. “By bringing together two leading US-based diversified tanker owners, we expect to deliver a number of compelling strategic and financial benefits to the stakeholders and customers of both companies.”
“We believe the combined company is well positioned to capitalize on opportunities in both the current market environment and well into the future,” said D Wheat
Stevenson Jr. of Diamond S, commented, “By combining our fleet and capabilities with INSW’s world-class operations, we believe the merger will significantly benefit each company’s stakeholders as market conditions improve… As a long-time proponent of industry consolidation, I believe this transaction gives the combined company the scale and diversity necessary to hold the status as a leader in the tanker markets for years to come.”
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