Algoma Wraps Up Acquisition Deal with Oldendorff
Algoma Shipping, a subsidiary of Canadian shipping company Algoma Central Corporation, has finalized the acquisition of the interest held by Oldendorff Carriers in the CSL International Pool.
As a result of the transaction, Algoma’s interest in the pool, that included three vessels owned by Oldendorff, has increased to around 40%.
The Handy-sized Algoma Verity (formerly the Alice Oldendorff) and the Panamax vessels Algoma Valour and Algoma Victory (formerly the Harmen Oldendorff and the Sophie Oldendorff, respectively) bring Algoma’s ocean going self-unloader fleet to eight vessels operating in the pool. The units were acquired at a price of USD 100 million.
“Deploying our capital to grow our position in the ocean self-unloader business is strategic and positions Algoma well for pool growth that we foresee in the years ahead,” said Peter Winkley, Chief Financial Officer of Algoma.
“We know this business and these ships well and with customer demand remaining strong, we believe this is a good time to increase our investment in a business that has generated strong returns for us in the past,” Winkley added.