Global Handysize owner and operator Cetus Maritime and South American based Nachipa Corp (Nachipa) are pleased to announce they are amalgamating their businesses.
Little more than a year after its creation from the merger of Asia Maritime Pacific and HBC, Cetus Maritime is continuing to lead industry consolidation, by amalgamating with Nachipa and continuing to grow as one of the largest private dry bulk Handysize players in the market.
The combined enterprise will be known as Cetus Maritime and will have some 40 owned and approximately 25 chartered vessels on the water at any given time, with a focus on larger, modern, eco-designed Handysize vessels. Cetus Maritime’s total shoreside staff will number about 120 people, spread over 9 offices globally, including Hong Kong, Singapore, Shanghai, Hamburg and now Santiago, Chile.
Definitive documentation has been signed, with transaction consummation remaining subject to customary closing conditions, which are expected to be met by March.
South America represents an important strategic market for Cetus Maritime, with increasing volumes of grains and minor bulks, and new trades being developed between this region and the Far East. Nachipa, with its 75 years of experience and strong reputation trading in South America, represents the ideal partner.
Both teams are excited by the prospects of this new partnership. Cetus Maritime CEO MarkYoung says “The fit with Nachipa was obvious to both sides from the start. For Nachipa, fleet scale is key to realising their business strategy. For Cetus, the Nachipa team is an impressive addition to our operational business, while the Nachipa vessels are accretive to our growing eco-fleet. As we have seen in the market over the past six months, consolidation is a key element to sustainable, successful growth. On the other hand, successful consolidation is all about the people. We feel that this is the right fit, at the right time.”
Nachipa Managing Director Felipe Simian, who will join the Cetus Maritime management team, agrees: “Since 1948, we have built our business on bespoke connections and a ‘glocal’ approach – fostering local relationships that enable us to deliver on a global level. I see that same approach in Cetus Maritime, and I believe our unparalleled understanding of the Americas markets and our Hamburg office are invaluable additions to the Cetus Maritime business platform. I believe we will be stronger, together, and I look forward to taking this company to the next stage of growth.”
Over the past 18 months, Cetus Maritime has executed a fleet renewal strategy, selling smaller, older vessels and purchasing larger, eco-designed Handysize vessels, transforming its fleet profile. With the addition of Nachipa’s Japanese built, modern Handysize vessels, Cetus Maritime’s fleet is now comprised of 75% eco-vessels.
The Cetus Maritime management team is excited to announce this merger as the latest step on the Company’s path to consolidation in the highly fragmented Handysize sector. With the increasingly complicated regulatory and technical environment coupled with rising funding costs, the benefits of scale are definitive and clear. Once formalities conclude and the integration is complete, the management team will look to additional growth opportunities, including acquisitions and consolidations.
The Cetus Maritime 65-strong fleet encompasses some smaller regional Handysize vessels, with a strong focus on larger versatile Handysize vessels from 32,000 dwt up to 43,500 dwt, and operational business on vessels up to Ultramax. The fleet will continue to grow towards larger, uniform, attractive eco-designed vessels that comply with current environmental regulations and look beyond to future fuel solutions.
Cetus Maritime press release