Royal Boskalis Westminster N.V. and SAAM S.A. have created a joint harbor towage operation within the American Continents in Brazil, Mexico, Canada and Panama.
The intended partnership, which is between SMIT, a wholly owned subsidiary of Boskalis, and SAAM, a wholly owned subsidiary of Sociedad Matriz SAAM S.A., was previously announced in September 2013 and all conditions to form the joint venture have now been fulfilled.
The combined companies will operate under the name SAAM SMIT Towage (SST).
The partnership consists of two underlying joint ventures, with a fleet of 100 tugboats, operating in more than 30 port terminals in Brazil, Mexico, Canada and Panama.
The total combined 2013 EBITDA of SST was $100m.
The merger will generate synergies estimated at approximately $10m per year, to be fully captured in the next 24 months.
The geographic scope of the first joint venture covers the Brazilian towage market, where SMIT and SAAM already had operations.
Boskalis and SAAM each hold a 50% share in this new joint venture. With a total of 42 tugboats, the combination is an important player in the growing market of Brazil, operating in major ports such as Rio Grande, Itajai, Santos and Salvador.
The second joint venture, in which SAAM holds a 51% majority stake, relates to the towage activities in Panama and Canada (SMIT) and Mexico (SAAM).
The combination will operate a total number of 58 tugboats. This joint venture will have presence in main ports of Canada (Prince Rupert and Vancouver), Panama (Manzanillo, Balboa, Colon Container Terminal) and Mexico (Veracruz, Lazaro Cardenas, Altamira, Tuxpan).
Press Release; July 2, 2014