This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Nov. 1, 2012 /PRNewswire/ -- Kirby Corporation ("Kirby") (NYSE:KEX) announced today the completion of the previously disclosed purchase of 13 barges and seven tugboats from Allied Transportation Company, a subsidiary of Allied Marine Industries, and two affiliated companies. The fleet of offshore barges and tugboats participates in the coastal transportation of petrochemicals, as well as dry sugar products, in the Northeast, Atlantic and Gulf Coast regions of the United States. The purchase price was
$116 million in cash, before post-closing adjustments, including
$10 million that will be paid contingent on developments with the sugar provisions in the U.S. Farm Bill. The purchase was financed using Kirby's revolving credit facility.
The fleet consists of 10 coastal 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 coastal tugboats. Ninety percent of the tank barges are under term contracts with large petrochemical customers. The barge fleet will be integrated with Kirby's existing coastal and offshore barge operations.
Kirby Corporation, based in
Houston, Texas, is the nation's largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, the Gulf Intracoastal Waterway, coastwise along all three
United States coasts and in
Alaska and Hawaii. Kirby transports petrochemicals, black oil products, refined petroleum products and agricultural chemicals by tank barge. Through the diesel engine services segment, Kirby provides after-market service for medium-speed and high-speed diesel engines and reduction gears used in marine and power generation applications. Kirby also distributes and services high-speed diesel engines, transmissions, pumps, compression products and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for the land-based pressure pumping and oilfield service markets.