Star Bulk Carriers and Eagle Bulk Shipping Announce Landmark $2.1 Billion Merger to Form Largest US-Listed Dry Bulk Shipping Company

Milestone Merger: Star Bulk Carriers and Eagle Bulk Shipping Unite Forces to Forge Unrivaled US-Listed Dry Bulk Shipping Powerhouse

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In a significant move within the maritime sector, global shipping giants Star Bulk Carriers and Eagle Bulk Shipping have recently inked a definitive agreement to undergo a transformative $2.1 billion all-stock merger. This strategic consolidation is poised to establish the preeminent dry bulk shipping entity listed in the United States.

Under the leadership of Star Bulk’s existing management team, in conjunction with select senior executives from Eagle Bulk, the amalgamated enterprise will preside over a robust fleet comprising 169 vessels. This fleet spectrum will span from the formidable Newcastlemax/Capesize class to the versatile Supramax/Ultramax vessels, encompassing a diverse and comprehensive operational profile.

Petro Pappas, the Chief Executive Officer of Star Bulk Carriers, affirmed his steadfast commitment to the new venture, retaining his CEO designation. Mr. Pappas articulated the profound impact of this merger, stating, “The synergies derived from the combined technical and commercial fleet management capabilities will optimize operational efficiency. Furthermore, our joint efforts will align with stringent health, safety, and environmental objectives, concurrently maximizing our earnings potential.”

The post-merger entity anticipates positioning itself as a global leader in the dry bulk shipping domain, leveraging a well-capitalized balance sheet. Mr. Pappas emphasized the commitment to delivering robust cash returns to shareholders while spearheading investments in emission reduction technologies, underscoring the company’s dedication to sustainable growth in the long term.

Upon the successful conclusion of the merger, projected within the first half of 2024, Star Bulk shareholders will assume majority ownership, holding approximately 71% of the company on a fully diluted basis. Concurrently, Eagle Bulk shareholders will retain a 29% ownership stake in the new entity.

Foreseeing enhanced operational efficiency, the amalgamation is anticipated to yield a minimum of $50 million in annual cost and revenue synergies within the first year to a year-and-a-half of the merger’s finalization. This economic benefit is poised to materialize through the seamless integration of operational functions and the realization of economies of scale within the unified corporate framework.

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