Global bunkering firm Aegean Marine Petroleum Network on Tuesday announced an approximate $367 million acquisition of H.E.C. Europe Limited (H.E.C.), the parent company of Hellenic Environmental Center S.A. and a group of companies that together provide global port reception facilities services.

H.E.C. and the group of companies are owned and controlled by Dimitris Melisanidis, Aegean’s founder and former Head of Corporate Development and certain members of his family, and members of the Agiostratitis family.

According to Aegean, the transaction is expected to help diversify Aegean’s current business model and reduce its dependency on bunker-market related sales.

The H.E.C. Group can leverage Aegean’s existing team and port relationships to expedite its market penetration, while significant synergies can be potentially achieved by repurposing/redeploying idle or underutilised Aegean vessels and consolidating corporate facilities.

The combination of the H.E.C. Group and Aegean will create one of the largest providers of port reception facility services. The companies expect future environmental regulatory trends to generate increased and sustainable demand for H.E.C. Group’s services.

“For the past several quarters, the Board and senior management have contemplated strategic options for Aegean reflecting the prospects of the traditional bunkering business, the challenges associated with the transition towards a market with a different product mix and the ever-growing needs of the shipping industry for greener products and services,” said Yiannis Papanicolaou, Chairman of the Board of Directors of Aegean.

“The acquisition of H.E.C., a world leader in its field, is our first decisive step in the direction of combining higher profitability for our shareholders with environmental sustainability and social accountability.

“Our next priority is the elaboration of a roadmap to operate successfully within the new landscape post-2020 IMO regulatory changes and beyond.”

Dimitris Melisanidis, founder of both Aegean and H.E.C. stated: “The combination of Aegean and H.E.C., two companies that I have been involved with since their creation, unites two businesses that are essential to shipping.”

“Just as Aegean has grown to become a worldwide brand synonymous with high quality physical supply of bunker fuels, H.E.C.’s business has the opportunity to expand globally, and become the market leader in the provision of essential environmental services to vessels and ports.

“I am happy to return as part of the group that will be the largest shareholder of the combined company as we focus on improving the overall health of the combined business and commit ourselves to a greener world.” 

Aegean expects the acquisition to increase the company’s 2018 revenue by approximately $60 to 65 million.

Photo credit: Aegean Marine Petroleum Network
Published: 21 February, 2018