Published: June 7, 2024 |

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Overseas Shipholding Group and Saltchuk Resources have entered into a definitive merger agreement where Saltchuk has agreed to acquire OSG in a transaction that values the company at an aggregate equity value of approximately $653 million and a total transaction value of $950 million. The agreement has been unanimously approved by the board of directors of both companies.

“We are pleased to have reached an agreement that reflects our leading Jones Act business, longstanding customer relationships, and the value created by the OSG team over the past several years,” said Douglas Wheat, chairman of the OSG board of directors.

“Following Saltchuk’s indication of interest to buy the company at the end of January, the board of directors, with the assistance of external financial and legal advisors, undertook a review of the company’s financial and strategic alternatives, including remaining a publicly held company. As part of that review, the board conducted a comprehensive process in which it engaged with Saltchuk and approached and engaged with other potential transaction counterparties. Informed by its review and that process, the board firmly believes Saltchuk’s increased offer represents compelling value to, and is in the best interest of, our shareholders not affiliated with Saltchuk,” added Wheat.

“We are excited to enter into this new chapter together with Saltchuk, which has been a significant shareholder of OSG over the past several years and has a close understanding of our business,” said Sam Norton, OSG’s president and chief executive officer.

“Saltchuk’s operating companies have distinguished themselves in their respective segments, and this transaction partners us with an organization that shares our values and focus on customers. We are thrilled to soon join the Saltchuk family of companies,” added Norton.

“OSG, our nation’s leading domestic marine transporter of energy, has a strong cultural fit with Saltchuk and shares our commitment to operational safety, reliability, and environmental stewardship. On behalf of the Saltchuk organization, we look forward to welcoming more than 1,000 members of the OSG team to our family of companies and growing the enterprise through multi-generational investments,” said Mark Tabbutt, chairman of Saltchuk Resources.

Following the close of the transaction, OSG will operate as a standalone business unit within Saltchuk, becoming a member of its family of diversified freight transportation, marine service, and energy distribution companies.

Saltchuk is a privately owned family of diversified freight transportation, marine service, and energy distribution companies, with consolidated annual revenue of approximately $5 billion and 7,500 employees. The corporate home provides leadership and resources to their companies but not direct management of their operations. Saltchuk is a values-driven organization. They put safety first and are committed to each other, to protecting the environment, and to contributing to communities in a work environment where anyone would be proud for their children to work.

Overseas Shipholding Group provides liquid bulk transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG’s U.S. Flag fleet consists of Suezmax crude oil tankers, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program. OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, Florida.

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