SMT Shipping (“SMT”) and The CSL Group (“CSL”) today announced they have entered into an agreement for CSL to acquire 50% of Eureka Shipping Ltd. (“Eureka”), SMT’s pneumatic cement vessel business.
The new joint venture will allow Eureka and CSL to combine expertise, resources and innovative technologies to expand services to customers in the seaborne cement powder and fly ash transportation markets around the world. CSL’s Australian cement shipping business is not included in the joint venture.
“The joint venture represents an important step in CSL’s strategy to increase its presence in the global construction material sector,” said Louis Martel, President and CEO of The CSL Group. “We are confident that the synergies between CSL and the Eureka team, along with our common values and complementary skills will further strengthen our ability to provide significant value to our customers and an effective platform for growth.”
“SMT Shipping is honored to partner with CSL in Eureka,” said Mark Voorham, CEO of SMT Shipping.
“We feel the new joint venture will harness the strengths of both respected companies, which will work together seamlessly to serve our clients with the highest levels of service and professionalism.”
“For Eureka Shipping, the partnership with CSL provides a strong, collaborative platform to further invest in innovative logistics solutions to the benefit of our customers in the cement and building materials industries,” added Kai Grotterud, CEO, Eureka Shipping Ltd.
The partnership is a strong strategic fit, leveraging the companies’ respective strengths in the shipping and handling of dry bulk cargos.
There will be no change in the day-to-day management and operation of vessels in the Eureka fleet. The transaction is subject to certain regulatory conditions and is expected to close by end of June.
Eureka Shipping Ltd. operates a fleet of self-unloading cement carriers in the Baltic Sea, the Atlantic Ocean, the Mediterranean Sea, the Caribbean and Asia.
The SMT Shipping Group has, over the past 30 years, built a fleet of about 45 vessels through a number of joint venture companies operating in various bulk commodities markets, focusing on highly efficient geared bulk carriers, floating storage/transhipment terminals and belt-unloaders.