Tank Barge Operator Makes $116M Acquisition

Kirby's fleet includes nearly 900 barges.

Kirby Corp. (Kirby) [NYSE:KEX], the largest domestic tank barge operator in the U.S., has reached an agreement to acquire fellow U.S. barge operator Allied Transportation Co. and two affiliated companies from Allied Marine Industries Inc. for $116 million, the company says.

The acquired companies operate 10 coastwise tank barges with a total capacity of 680,000 barrels, three offshore dry-bulk barges with a total capacity of 48,000 deadweight tons and seven tugboats.

"Allied has one of the most complementary coastal fleets to Kirby's existing coastal and inland operations," said Joe Pyne, Kirby's Chairman and Chief Executive Officer.

"In addition to enhancing Kirby's ability to expand and strengthen certain existing customer relationships, the acquisition of Allied provides Kirby with a strong footprint from which to grow the petrochemical segment of our offshore business."

The purchase, which includes $10 million contingent on the sugar provisions of the U.S. Farm Bill, will be financed through Kirby's revolving credit facility, and the company said the deal does not change its earnings guidance for 2012.

As of February 2012, Kirby owned or operated 819 inland tank barges, 236 inland towboats, 59 coastal tank barges, 65 coastal tugboats, four offshore dry-cargo barges, four offshore tugboats and one docking tugboat, according to company financial filings.

In 2011, it had profits of 183 million on revenues of $1.9 billion, which included $1.2 billion from its marine transportation business and $656 million from diesel engine services.

In May, Kirby told Bloomberg that its chemical-carrying vessels were running at full capacity as low natural gas prices spurred exports of the products.