TECO agrees to sell barge subsidiary
TECO Energy, parent company of Tampa Electric Co. and People’s Gas System, said it has executed a definitive agreement to sell its barge subsidiary TECO Transport Corp. to an investment group for $405 million.
TECO Transport operates TECO Ocean Shipping, a U.S.-flag oceangoing fleet; TECO Barge Line, a river barge fleet on the U.S. inland waterways; and TECO Bulk Terminal, a dry-bulk commodity deepwater transfer and storage terminal.
The company will be purchased by a group led by an affiliate of Greenstreet Equity Partners L.P., a Miami-based private equity firm founded by Steven Green, former U.S. Ambassador to Singapore, and Jeffrey Safchik.
The purchase price is subject to working capital adjustment and net proceeds to TECO after transaction-related costs, including state and federal taxes, are expected to be about $370 million to $380 million.
Sherrill Hudson, chairman and chief executive of TECO, said the sale was “the best alternative for TECO Energy’s shareholders, allowing us to accelerate our debt retirement plan, strengthen our balance sheet and focus on our utility businesses.”