Genesis Energy to buy tug, barge business for $230 million

Genesis Energy, a Houston-based midstream energy partnership, is buying a tank barge and tug business from Hornbeck Offshore Services for $230 million.

The transaction involves Hornbeck’s downstream transportation operation, including nine ocean-going tugs and nine double-hulled tank barges that transport crude oil and refined products.

Hornbeck is based in Covington, La.

Genesis Energy said in a news release this week that the business it is acquiring mostly serves refineries and storage terminals along the Gulf Coast, Eastern Seaboard, Great Lakes and Caribbean. It said the barges have an average age of eight years and that eight of the tugs in the transaction have been rebuilt and put into service since 2005.

Todd M. Hornbeck, CEO of Hornbeck Offshore Services, said in a statement that the sale of the downstream assets will allow the company to focus on its upstream business, which includes a fleet of offshore supply vessels.

The companies expect the deal to close by Sept. 30.