Aegean Marine Petroleum Network Inc. Announces Agreement to Acquire Verbeke Bunkering N.V.
05 January 2010 - 8:30AM
PR Newswire (US)
Increases Global Scale by Establishing Strategic Presence in
World's Second Largest Bunkering Market; Further Expands
High-Quality Bunkering Fleet and Positions Company to Significantly
Increase Sales Volumes PIRAEUS, Greece, Jan. 4
/PRNewswire-FirstCall/ -- Aegean Marine Petroleum Network Inc.
(NYSE:ANW) today announced it has entered into an agreement to
acquire Verbeke Bunkering N.V., a leading physical supplier of
marine fuel in the Antwerp-Rotterdam-Amsterdam (ARA) region, the
world's second largest bunkering market. The acquisition, which is
subject to the completion of detailed documentation, is scheduled
to close by the end of the first quarter of 2010. Verbeke Bunkering
is majority owned by the fourth generation of the Verbeke family,
which has an operating history of more than 100 years initially in
shipping and subsequently in bunkering. As a physical supplier,
Verbeke Bunkering covers the entire ARA region, including key ports
surrounding Antwerp, Rotterdam and Amsterdam such as Ghent,
Zeebruges, Flushing, Terneuzen, and Sluiskil. The company provides
bunkering services in port to a diverse group of ship operators as
well as marine fuel traders, brokers and other users. Verbeke
focuses on purchasing quality marine fuels from refineries and
major oil producers and providing same-day sales and delivery
services to customers. For the twelve months ended December 31,
2009, the volume of marine fuel sold by Verbeke is expected to
total approximately 3,500,000 metric tons. Verbeke Bunkering
operates a total of 18 bunkering vessels, of which nine are owned
and nine are chartered-in. Two of the nine owned vessels are joint
ventures in which Verbeke holds a minority stake. In connection
with the acquisition, Aegean has agreed to purchase the nine owned
bunkering vessels and assume the contracts for the nine vessels
chartered-in by Verbeke. Additionally, Aegean will assume the
contract for a bunkering tanker newbuilding, of which Verbeke holds
a 50% stake, scheduled to be delivered in 2010. E. Nikolas
Tavlarios, President of Aegean, commented, "The accretive
acquisition of Verbeke represents our largest acquisition to date,
positioning Aegean well to significantly increase future sales
volumes and strengthen the Company's global brand recognition.
Based on its extensive operating history and strong reputation for
high-quality service, Verbeke has built a leading market position
in the ARA region. We intend to capitalize on the favorable growth
prospects in the world's second largest bunkering market and meet
the demand for our comprehensive marine fuel services. In addition
to establishing a strategic presence in this important region with
considerable ship traffic, we expect to realize meaningful
operating synergies with our Belgium-based subsidiary, Bunkers at
Sea, which Aegean acquired in 2007." Mr. Tavlarios added,
"Including our latest acquisition, Aegean has more than tripled its
global reach since the Company's IPO in December 2006. Consistent
with management's opportunistic approach to consolidating the
marine fuel supply industry in a disciplined manner, we expect to
further expand Aegean's global market share and increase the
Company's earnings power." Upon closing of the acquisition, Verbeke
will operate as a wholly owned subsidiary of Aegean and maintain
its headquarters located near Antwerp. Verbeke will continue to be
led by its Chief Executive Officer, Tony Vertommen. Commenting on
the announcement, Mr. Vertommen said, "We are excited to merge with
Aegean Marine Petroleum Network. The Company has established itself
as a leading independent physical supplier of marine fuel from
procurement to delivery. By joining Aegean's premier global
network, we expect to expand our opportunities for long-term growth
and strengthen our leading position in our core markets." Spyros
Gianniotis, Chief Financial Officer of Aegean, stated, "We are
pleased to continue to successfully execute Aegean's growth
strategy while adhering to our strict return requirements. This
acquisition further expands our global marine fuel platform,
enhancing our ability to meet the needs of our blue-chip customers
that operate on a worldwide basis. We plan to draw upon our
revolving credit facilities and seek alternative financing to
support our growth initiatives. In maintaining our commitment to
enter new markets, we remain focused on expanding Aegean's industry
leadership and creating long-term value for shareholders." About
Aegean Marine Petroleum Network Inc. Aegean Marine Petroleum
Network Inc. is an international marine fuel logistics company that
markets and physically supplies refined marine fuel and lubricants
to ships in port and at sea. The Company procures product from
various sources (such as refineries, oil producers, and traders)
and resells it to a diverse group of customers across all major
commercial shipping sectors and leading cruise lines. Currently,
Aegean has a global presence in 14 markets, including Vancouver,
Montreal, Mexico, Jamaica, Trinidad and Tobago, West Africa,
Gibraltar, U.K., Northern Europe, Piraeus, Patras, the United Arab
Emirates, Singapore as well as Tangiers, Morocco. Cautionary
Statement Regarding Forward-Looking Statements Matters discussed in
this press release may constitute forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other
than statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "intend," "anticipate," "estimate," "project,"
"forecast," "plan," "potential," "may," "should," "expect" and
similar expressions identify forward-looking statements. The
forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, our management's
examination of historical operating trends, data contained in our
records and other data available from third parties. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond our control, we cannot assure you that we
will achieve or accomplish these expectations, beliefs or
projections. In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include our ability to manage growth, our ability to
maintain our business in light of our proposed business and
location expansion, our ability to obtain double hull secondhand
bunkering tankers, the outcome of legal, tax or regulatory
proceedings to which we may become a party, adverse conditions in
the shipping or the marine fuel supply industries, our ability to
retain our key suppliers and key customers, material disruptions in
the availability or supply of crude oil or refined petroleum
products, changes in the market price of petroleum, including the
volatility of spot pricing, increased levels of competition,
compliance or lack of compliance with various environmental and
other applicable laws and regulations, our ability to collect
accounts receivable, changes in the political, economic or
regulatory conditions in the markets in which we operate, and the
world in general, our failure to hedge certain financial risks
associated with our business, our ability to maintain our current
tax treatments and our failure to comply with restrictions in our
credit agreements and other factors. Please see our filings with
the Securities and Exchange Commission for a more complete
discussion of these and other risks and uncertainties. DATASOURCE:
Aegean Marine Petroleum Network Inc. CONTACT: Aegean Marine
Petroleum Network Inc., +1-212-763-5665, ; or Investor Relations:
Leon Berman, Principal, The IGB Group, +1-212-477-8438
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