The acquisition of K-Sea Transportation (NYSE:KSP) by Kirby Corp (NYSE:KEX) sent shares of K-Sea Transportation skyward. Intraday trading brought KSP shares up over $1.50 (25%) on nearly 3.7 million shares and closed the day up $1.70 (26.28%). Kirby Corp shares rose $1.00 up a modest 1.8% to $56.33 by the close of the market. Kirby Corp also saw an intra day high of $60.00 a share and an intra day low of $55.12.
Kirby Corp, a Houston, TX based company, will also assume and refinance $265 million of KSP debt bringing the total value of the deal to $600 Million dollars. KSP shareholders will have the option to receive $8.15 in cash per common stock or $4.075 in cash and 0.0734 shares of Kirby Corp common stock. This represents a 26% gain from where KSP common shares closed on Friday March 11, 2011.
Kirby Corp will be adding another 121 Vessels to its already impressive staple of 1149 vessels. K-Sea will operate as a subsidiary of Kirby Corp and will maintain K-Sea’s current management staff.
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