New entity to be called BW Epic Kosan – Combined fleet of 77 vessels

Epic Gas, a leading LPG shipping solutions company, and Lauritzen Kosan A/S (“Lauritzen”), the gas carrier division of J. Lauritzen, today announce that they have entered into a transaction agreement to combine their fleet and business activities to create BW Epic Kosan.

• Combination creates a world leader in last mile delivery of LPG and other speciality gases and petrochemicals: Lauritzen Kosan will contribute 34 gas carriers to Epic Gas’s fleet of 43 pressurised gas vessels, in addition to certain other assets, in exchange for new shares in Epic Gas equivalent to a 27% stake.
• BW Epic Kosan will have greater scale and synergies across the organisation – the combined fleet of 77 LPG/ethylene vessels will range in size from 3,500 cbm to 12,000 cbm. 53 of the vessels will be wholly owned, with a Gross Asset Value of USD 900 million. The combined organisation will have significant commercial and technical capability across pressurised, semi-refrigerated, refrigerated gas and petrochemical transportation.
• Enhanced global reach – our aim is to deliver leading service and operational standards to our combined global customer base. BW Epic Kosan will be headquartered in Singapore, with Copenhagen as a regional office alongside offices in London, Manila, and Tokyo. Epic Gas’s current CEO Charles Maltby will be CEO of the combined entity, Lauritzen Kosan’s CEO Thomas Wøidemann will lead the commercial organisation, and Epic Gas CFO Uta Urbaniak-Sage will be CFO. The team will be built on the strengths of both organisations.
• Reduced cost of finance – As a part of this transaction, BW Epic Kosan has secured committed finance for the Lauritzen Kosan fleet at USD 155 million from SEB, Danske Bank, Nordea, Danish Ship Finance and Crédit Agricole CIB.
• Strong shareholder base – Post-completion, BW Group will be the largest shareholder in BW Epic Kosan with 58%, followed by J. Lauritzen A/S with 27%, Tailwind, and Epic’s existing minority shareholders. The shares will continue to trade on Euronext Growth Oslo as EPIC.
• Completion of the transaction is subject to obtaining necessary competition clearances, as well as other customary closing conditions. The transaction is expected to close by the end of Q1 2021.
• Lauritzen Kosan was advised on the transaction by SEB Corporate Finance.

  Comment

  Andreas Sohmen-Pao, Chairman of Epic Gas, says:

  “This transaction combines two well reputed operators into a strong new entity in the sector. We welcome our colleagues from Lauritzen Kosan and look forward to working together to build a great company delivering cleaner energy and feedstock to communities around the world.”