A subsidiary of transportation and petroleum distribution company, Saltchuk Resources, has entered into a binding purchase and sale agreement to acquire Tropical Shipping and its related companies, it was announced Monday.
For 15 years Saltchuk has been serving the people of Puerto Rico through Sea Star Line, its U.S. flag operation.
The acquisition includes the shipping and logistics company and all of its related transportation, consolidation and cargo insurance companies. As an international foreign flagged shipping and logistics operation, Tropical and its related companies will become Saltchuk’s sixth line of business. Tropical will continue to operate as a standalone operation.
The addition of Tropical Shipping to the Saltchuk family of companies furthers the company’s commitment to the Caribbean market, it said. Tropical, based in the Bahamas, will provide a foreign flag fleet service to the balance of the region.
“Most importantly, Tropical shares our values. The Company has a strong safety culture, has the best on time service in its region, and is committed to giving back to the communities which it serves” said Saltchuk Chairman Mark Tabbutt and President Tim Engle in an announcement to employees. “All of the traits that make our other companies so strong can be found also at Tropical.”
With the addition of Tropical, Saltchuk will employ 7,500 people nationwide. The company was recently named one of the 2014 World’s Most Ethical Companies by the Ethisphere Institute.
The sale is expected to close within the next 90 days, while the financial terms of the agreement were not disclosed.