Houston-based tank barge operator purchases tank barges and tugs in acquisition.
Kirby Corp., a Houston-based tank barge operator, has announced the intent to purchase the assets of Allied Transportation Co., Norfolk, Va., $116 million.
As part of the acquisition, Kirby purchased seven tug boats, 10 coastwise tank barges with a liquid capacity of 680,000 oil barrels (bbls) and three offshore dry-bulk barges.
Allied’s business is made up of 80 percent petrochemicals with the remaining 20 percent made up of sugar and other dry products, according to Kirby CEO Joe Pyne. The deal is expected to close in the late third quarter or early fourth quarter of 2012.
Allied’s customers who operate along the Northeast, Atlantic and Gulf coasts, include major petrochemical companies which Kirby also serves inland. Pyne says that unlike the vessels it obtained through its $600 million acquisition of K-Sea Transportation Partners (now Kirby Offshore Marine), Allied’s equipment is in good condition.
“We have thoroughly vetted this equipment which we’re buying and are comfortable it’s well maintained,” he says.
Pyne adds that Allied is in good financial shape and very carefully managed. Kirby says it had several months to look over Allied’s equipment and only 10 days to examine K-Sea’s fleet of 58 tank barges and 63 tugboats.
“We’re pretty comfortable with what we bought,” Pyne says of Allied.
In addition to the Allied acquisition, the company has announced plans to purchase 17 inland tank barges operated by Lyondell Chemical Co., which Kirby was managing.
“We think that our balance sheet positions us to continue to consolidate the businesses that we’re in,” Pyne says.