Wed 18 Jun 2008, 15:19 GMT

Aegean acquires ICS Petroleum


Piraeus-based supplier extends its network to drive future sales growth in North America.



Aegean Marine Petroleum Network Inc.(AMPNI) has announced that it has entered into an agreement to acquire Vancouver-based ICS Petroleum, a leading marketer and physical supplier of marine fuel in Canada and Mexico. The acquisition, which is subject to normal closing conditions, is scheduled to close in July 2008.

In connection with this acquisition, Aegean has agreed to purchase two single-hull barges, used in the delivery of marine fuel, from ICS; these barges are eligible for employment until 2015.

Formed in 1984, ICS markets marine fuel to the Western and Eastern Canadian markets from its offices in Vancouver and Montreal. In addition, the Company acts as a physical supplier in Vancouver. ICS also markets marine fuel in Mexico. In 2007, the company sold over 560,000 metric tons of marine fuel across all its regions.

E. Nikolas Tavlarios, President of AMPNI, commented, "With the acquisition of ICS, Aegean is positioned to once again capitalize on an attractive market opportunity that further expands its global network for the physical supply of marine fuel. ICS has a well-established business with a strong reputation that will provide a critical bunkering presence for Aegean in North America. Vancouver serves as the largest port in Canada due to its considerable ship traffic and is one of the largest ports in North America based on total cargo volume. Montreal also boasts significant ship traffic as it serves as an important gateway to the Saint Lawrence Seaway and Great Lakes region. We intend to finance this acquisition, which meets our strict return criteria, through borrowings under our $300 million senior secured revolving credit facility."

Mr. Tavlarios added, "Consistent with our past success in consolidating the industry through accretive acquisitions in Northern Europe and the U.K., we plan to leverage our extensive customer base to drive future sales volume growth in North America. As we continue to expand our global reach during a time when we expect to further grow our logistics infrastructure, Aegean has significantly enhanced its long-term earnings potential for the benefit of the Company and its shareholders."

ICS Petroleum will function as a wholly owned subsidiary of Aegean and will continue to operate business out of its Vancouver and Montreal offices. "We are thrilled to join Aegean," said Justin Noice of ICS. "Aegean is the premier independent physical supplier of marine fuel globally and through our business combination, ICS will be able to leverage off of the Company's vast global platform and access to capital allowing for continued growth and success for our business."


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