EuroDry Sets Sail For Expansion: Acquires Three Ultramax Bulkers In $65M Deal

Drybulk vessels operator EuroDry Ltd EDRY has agreed to acquire three Ultramax bulkers for a total price of about $65 million.

The vessels include M/V Giants Causeway, a 63,197 dwt drybulk vessel built in 2015, M/V Sadlers Wells, a 63,153 dwt drybulk vessel built in 2015 and M/V Gallileo, a 63,177 dwt drybulk vessel built in 2014.

The vessels are expected to be delivered to EuroDry during October and November 2023.

EuroDry will finance the acquisitions with its own funds and bank debt.

"This acquisition further expands our modern fleet cluster at a time when we believe that the market fundamentals, especially the low orderbook, are very supportive of a healthy market over the next two to three years," said Chairman and CEO Aristides Pittas.

"We expect these vessels to make significant contributions to our EBITDA."

After the three vessels are inducted, the company would have a fleet of 13 vessels, including 2 Kamsarmax drybulk, 5 Panamax drybulk carriers, 5 Ultramax drybulk carriers, and 1 Supramax drybulk carrier.

EuroDry held cash and equivalents of $39.5 million as of June 30, 2023.

Price Action: EDRY shares are trading lower by 0.21% at $14.03 on the last check Tuesday.