Algoma Central to acquire six Canadian-flagged vessels

Executive Summary

• Algoma Central Corp. has entered into a definitive agreement to acquire Mainstay Maritime Inc.'s Lower Lakes Fleet, comprising three Canadian operating companies and six Canadian-flagged vessels.
• The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions.
• The acquisition will expand Algoma's Canadian dry-bulk fleet and Great Lakes operational footprint, while enabling Mainstay to refocus its strategic priorities on the U.S. Jones Act market.

Key Details

• Transaction Structure: Definitive agreement to acquire Mainstay Maritime Inc.'s three Canadian operating companies and associated fleet.
• Target/Counterparties: Mainstay Maritime Inc. (formerly Rand Logistics Inc.) / Lower Lakes Towing Ltd. and associated operating companies.
• Assets Acquired: Six Canadian-flagged vessels: Kaministiqua, Manitoulin, Robert S. Pierson, Saginaw, Michipicoten, and Valo.
• Expected Closing: First quarter 2026.
• Closing Conditions: Subject to customary closing conditions.
• Mainstay Advisers: Stikeman Elliott LLP (legal counsel), AMA Capital Partners (financial adviser).
• Algoma Advisers: Borden Ladner Gervais LLP (legal counsel).
• Strategic Rationale (Mainstay): Allows Mainstay to sharpen focus on the U.S. Jones Act market, increase reinvestment in its U.S.-flagged fleet, and position the company to meet growing customer needs.
• Strategic Rationale (Algoma): Expands Algoma's Canadian dry-bulk fleet and operational capabilities on the Great Lakes-St. Lawrence Seaway, aligning with the company's focus on safety, reliability, and high-quality service.

Notable Quotes

• Greg Binion, CEO, Mainstay Maritime: "For Mainstay, this transaction represents a natural step in Mainstay's evolution for the long-term benefit of all our constituencies -- allowing us to sharpen our focus on the U.S. Jones Act market, increase our reinvestment in our U.S.-flagged fleet and position the company to meet the growing needs of our customers."
• Gregg Ruhl, President & CEO, Algoma Central Corp.: "Algoma is pleased to grow our Canadian dry-bulk fleet with the addition of Lower Lakes' vessels and experienced team... this acquisition enhances our ability to provide exceptional marine transportation services to our customers across the Great Lakes-St. Lawrence Seaway."