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Kirby To Buy Higman Marine For $419 Mln Cash - Quick Facts

Kirby Corp. (KEX), the nation's largest domestic tank barge operator, late Sunday announced the signing of a definitive agreement to acquire Higman Marine, Inc. and its affiliated companies , for approximately $419 million in cash, subject to certain closing adjustments.

Depending on the purchase price allocations, the company expects the acquisition to be earnings neutral in 2018 as it will take time to align Higman's tank barge utilization rates with Kirby's.

While debt levels will increase in the near term, Kirby's financial policies remain unchanged, and the company expects to rapidly deleverage post-acquisition.

The closing of the acquisition is expected to occur in the first quarter and is subject to customary closing conditions.

The purchase will be financed through additional borrowings.

Kirby noted that Higman's marine transportation fleet consists of 159 inland tank barges with 4.8 million barrels of capacity, and 75 inland towboats. The fleet moves petrochemicals, refined petroleum products, crude oil, natural gas condensate, and black oil on the Mississippi River System and Gulf Intracoastal Waterway for large midstream and global integrated oil companies.

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