Bear Stearns completes purchase of MC Shipping
Bear Stearns Merchant Banking said it has completed its acquisition of MC Shipping Inc., a company that focuses on the transportation of liquefied petroleum gas.
The private equity firm paid about $284 million or about $14.25 per share for the company and assumed all debt.
Monaco-based MC shipping has full or partial interest in 22 LPG vessels and has contracted to purchase two more.
“Global trends in LPG demand growth should continue to be strong due to its cost-competitiveness as well as its clean-burning, environmentally friendly properties,” predicted Doug Korn, senior managing director and partner at Bear Stearns. He said MC's management “has done an excellent job repositioning MC Shipping over the last several years, and we look forward to supporting them as they continue to build and grow the company with enhanced financial flexibility.”
MC Shipping has owned a mixed fleet of LPG ships, containerships and general-purpose ships, but in recent years has been narrowing its focus by expanding in the gas business and selling other assets.
“MC Shipping has been engaged in a three-year project to turn its business around and to give it structure and focus,” said Antony Crawford, president and chief executive officer of MC Shipping. “The welcome entry of BSMB is well timed to provide the additional equity, financial skills and guidance to allow the next stage of the business plan to be implemented while allowing current shareholders a favorable exit.”
Bear Stearns completes purchase of MC Shipping