Hornbeck Offshore To Divest Downstream Segment For $230 Mln

(RTTNews) - Hornbeck Offshore Services Inc. (HOS) has agreed to sell its downstream segment's tug and tank barge fleet to an affiliate of Genesis Energy L.P. (GEL) for $230 million in cash.

The downstream vessels to be sold to Genesis are comprised of Hornbeck's active fleet of nine ocean-going tugs and nine double-hulled tank barges.

The transaction is subject to customary closing conditions and regulatory clearances, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act, and is anticipated to close by the end of the third quarter of 2013.

Chief Executive Todd Hornbeck said, "Given the substantial pending growth in our Upstream fleet over the next few years as a result of previously announced newbuild and retrofit programs and any incremental organic or acquisitive growth that may arise, we believe that the timing is right to divest of our non-core Downstream segment in order to strategically focus our energies on our Upstream core business."