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KILGORE, Texas, Feb. 28, 2013 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) ("MMLP" or the "Partnership") and Florida Marine Transporters, Inc. ("FMT") announced today that MMLP has purchased from FMT affiliates six liquefied petroleum gas ("LPG") pressure barges and two commercial push boats for approximately $50.8 million.
The newly acquired LPG barges enhance MMLP's natural gas liquids ("NGL") handling capabilities. The Partnership intends to use these assets to capitalize on logistical opportunities associated with NGLs on the Gulf Coast. Incremental NGL production volume from the Eagle Ford Shale is one of the primary drivers of the increasing demand for these types of assets. MMLP intends to drive margin by capitalizing on logistical opportunities in excess of the standard marine transportation services revenue. The Partnership believes it will achieve a seven times acquisition multiple based on its cash flow projections for these assets.
The LPG barges will reside in the Natural Gas Services segment of the Partnership although they will be operated by Martin Marine (Marine Transportation segment). Each LPG barge has a pressurized cargo capacity of approximately 16,000 barrels (total capacity for all LPG barges of approximately 96,000 barrels) and was constructed within the last two years. Similarly, both push boats are modern and efficient, having being built in 2007 and 2010, respectively.
About Florida Marine Transporters, Inc.
Florida Marine Transporters, Inc. and the Florida Marine Group of affiliated companies are founded on strong family values and the "Relentless Pursuit of Excellence" to be the best inland boat and barge operators. FMT started with a handful of tow boats and tank barges and systematically expanded so that today it runs its own shipyard and training facility and operates the industry's newest diversified fleet of more than six dozen push boats and several hundred tank, deck, hopper and pressure barges to transport liquid, chemical, dry, and pressurized cargoes—with nearly eight hundred employees dedicated to transporting customers' resources with the highest levels of safety, efficiency, and environmental stewardship.