General Maritime Corp, a crude oil tanker company, said on Friday it agreed to acquire the fleet and technical operations of Portuguese shipping company Soponata SA for $415 million in cash.
As part of this transaction, General Maritime will acquire five vessels, four newbuilding contracts and Soponata's technical management company. Including the newbuildings, the company's fleet will increase to 51 vessels.
The company plans to finance the deal, which it expects will immediately boost earnings, with cash on hand and borrowings on a revolving credit facility.
General Maritime said it expected the deal, which is expected to be completed by May, adding $34.2 million a year to operating cash.
Shares of General Maritime were trading up 47 cents or 2.26 percent at $21.25 in early trade on the New York Stock Exchange.