Seacor and Seabulk merge

Seabulk International and SEACOR Holdings announced they have signed a definitive merger agreement. The Boards of Directors of both companies have unanimously approved the transaction. After giving effect to the transaction, the combined company will be a leader in world-wide offshore support services, domestic Jones Act tankers, domestic helicopter services to the offshore oil and gas industry, domestic inland river barge transportation, environmental services, and domestic harbor tugs. Additionally, the companies have investments in international product tankers and dry bulk shipping.

Charles Fabrikant, SEACOR’s Chairman and CEO, explained the strategic reasons for the transaction: “The merger of SEACOR and Seabulk fits the goal of diversification we have outlined for several years in annual letters to shareholders. Both SEACOR and Seabulk have achieved leadership positions in different asset-based transportation service businesses. The combination will create a balanced portfolio of assets, focused on five different business niches. Seabulk’s position in the US tanker business, with its business template of multi-year contracts, and the harbour tug business are a good balance to the offshore vessel sector, the helicopter business, and the inland river barge business.”

This combination is also complementary for both companies’ offshore operations. SEACOR’s fleet and its recent capital commitments have been primarily focused on equipment in the US, serving the deep-water exploration industry while Seabulk’s recent investments have been focused on its international fleet. Seabulk’s operations in Brazil and the Arabian Gulf and SEACOR’s operations in the North Sea, along with the operations of both companies in Mexico, Asia, and West Africa, provide flexibility in serving customers and the combined company will be one of only two providing complete global service.

The merger is expected to close by the end of the second quarter of 2005, subject to approval by Seabulk’s stockholders and SEACOR’s stockholders of the issuance of shares of SEACOR common stock in the merger.