Saltchuk completes $950M OSG acquisition

Saltchuk Resources, a Seattle-based family of companies, has completed its acquisition of Florida-based tanker shipowning and operating company Overseas Shipholding Group (OSG).

The company purchased all of the outstanding shares of common stock of OSG not already owned by Saltchuk for a purchase price of $8.50 per share in cash, an enterprise value of approximately $950 million.

The transaction closed on July 10, and OSG is now a wholly-owned subsidiary of Saltchuk.

OSG joins Saltchuk as its seventh business unit, adding energy shipping to its diversified lines of business which include domestic shipping, international shipping, logistics, marine services, energy distribution, and air cargo.

“The transaction with Saltchuk marks a significant development in the long history of OSG and we are very pleased that it has been successfully completed. Leadership at both of our companies sees the value of having our business lie within the Saltchuk family of companies, an organization committed to sustaining the important role of the domestic maritime industry within the USA. The entire team at OSG looks forward to our future together,” Sam Norton, OSG’s President and Chief Executive Officer, said.

“As with our other businesses, OSG will remain standalone and independently managed. We look forward to working alongside the OSG team as we move forward together,” Mark Tabbutt, Saltchuk Chairman, commented.

In the past, Saltchuk made several attempts to acquire OSG shares, each time increasing the bid price.

OSG owns and operates more than 20 vessels delivering crude oil, petroleum products and renewable fuels throughout the world. The company has been implementing several environmentally friendly initiatives. In 2023, it expanded the OSG’s developing carbon capture, utilization and storage (CCUS) business line thanks to federal grants. In addition, it made capital commitments of nearly $60 million to carry out lifecycle upgrades for its Alaskan class fleet, extending their life while reducing the carbon intensity of the largest vessels in the OSG fleet. What is more, the company installed engine power limitation devices on all tankers to limit the maximum power generated by their propulsion engines, thereby reducing fuel consumption.