New York-listed Kirby Corporation on Thursday (30 January) said it has signed a definitive agreement to acquire the inland tank barge fleet of Savage Inland Marine (Savage) for approximately $278 million in cash and the assumption of leases.
Savage’s tank barge fleet consists of 90 inland tank barges with approximately 2.5 million barrels of capacity and 46 inland towboats.
The company primarily moves petrochemicals, refined products, and crude oil on the Mississippi River, its tributaries, and the Gulf Intracoastal Waterway.
“Savage also operates a significant ship bunkering business as well as barge fleeting services along the Gulf Coast,” notes Kirby in a statement.
The closing of the acquisition is expected to occur late in the first quarter of 2020 and is subject to customary closing conditions and regulatory approvals. The purchase will be financed through additional borrowings.
“The purchase of Savage’s inland tank barge and towboat fleet represents an excellent strategic addition to Kirby’s inland marine fleet with young, well-maintained vessels,” said David Grzebinski, Kirby’s President and Chief Executive Officer.
“In the last few years, Savage has built a diverse and well-respected inland marine transportation business with a strong presence in towing, bunkering, and fleeting along the Gulf Coast.
“These operations complement Kirby’s inland business very well and will enable us to better service our customer’s towing and fleeting needs.
“Further, Savage’s ship bunkering business in New Orleans is an ideal expansion of Kirby’s existing bunkering operations in Texas and Florida, and gives Kirby the ability to service bunker customers in this important Gulf Coast port.”
Savage will continue to provide inland marine services to customers until the transaction is completed, said its President and Chief Executive Officer.
“We’re proud of the excellent service our inland marine Team Members have consistently provided for Customers in the Gulf Coast and throughout the Intracoastal Waterway,” stated Kirk Aubry.
“I’m confident that along with Kirby’s existing team, they’ll continue to provide value for chemical companies, refineries, and other businesses that transport bulk materials and products on the water.”
Photo credit: Kirby Corporation
Published: 31 January, 2020
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