Norway-based Ocean Yield said on Thursday that, together with vehicles managed by KKR, it had agreed to purchase 100 percent of the shares in CapeOmega Gas Transportation.
It did not provide the pricing details.
The firm said that seven LNG vessels out of the ten are currently on the water with an average age of two years, and three vessels are to be delivered from the shipyard in 2025 and 2026.
All vessels are employed on long-term charters to the tier-one investment grade-rated energy companies, Shell, Engie, and QatarEnergy, with an average contract duration of 9 years, or 16 years including extension options.
The transaction will add approximately $120 million to Ocean Yield’s adjusted Ebitda backlog.
Closing of the transaction is expected to occur during the second half of 2025.
In addition, KKR is also expected to inject additional equity into Ocean Yield to help maintain a robust balance sheet with capacity for further growth, it said.KKR in connection with the transaction.
“We are pleased to co-invest with KKR in this transaction, which provides attractive exposure to modern LNG carriers, all employed on long-term charters to investment grade-rated counterparties,” Andreas Rode, CEO at Ocean Yield, said.
Last year, Rode said that Ocean Yield plans further to grow its LNG business following its inaugural deal to buy a stake in LNG carrier owner France LNG Shipping.
Earlier this year, Ocean Yield agreed to increase its stake in France LNG Shipping.
The transaction will increase Ocean Yield’s indirect economic interest in FLS from 34 percent to 45 percent.
FLS is a 50/50 joint venture between Japan’s NYK and France’s Geogas LNG, a firm jointly owned by Ocean Yield, Access Capital Partners, and Geogas Maritime.
