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Tug Technology & Business

Kirby spends US$710 million on US group

Fri 16 Jun 2017 by Martyn Wingrove

Kirby spends US$710 million on US group
Kirby operators a fleet of tugboats employed in US inland waterway and coastal barge transportation

Kirby Corp is set to spend US$710 million to acquire North American marine construction and oilfield equipment manufacturer Stewart & Stevenson. Kirby, as one of the largest US tank barge and tugboat operators, has agreed to acquire the company from Houston-based Parman Capital Group.

The deal includes US$355 million of Kirby common stock and the remainder from Kirby’s revolving credit facility. The value of the deal is before post-closing adjustments and transaction fees. Kirby expects the acquisition to be completed in the third quarter of this year after regulatory approvals.

Kirby executive chairman Joseph Pyne said the purchase of Stewart & Stevenson would diversify the group’s operations to include more of the oilfield and marine construction equipment distribution. Stewart & Stevenson also manufactures and distributes products for transportation, mining, power generation and agricultural industries.

“The combination of Stewart & Stevenson with Kirby’s existing distribution and services business has the potential to unlock significant strategic value, dampen overall volatility in the business, and create a larger organisation at an opportune time,” Mr Pyne commented.

Kirby president and chief executive David Grzebinski said: “The transaction creates one of the largest distribution networks in the US with the engineering and technological capacity to successfully address the complex requirements of a large customer base in a competitive national and global environment.”

Stewart & Stevenson serves domestic and global markets with equipment, rental solutions, parts, and service through a strategic network of sales and service centres. Kirby transports bulk liquids throughout the Mississippi River system, on the Gulf Intracoastal Waterway, coastwise along all three US coasts, and in Alaska and Hawaii. 

Kirby transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. It also operates offshore dry bulk barge and tugboat units engaged in the offshore transportation of dry bulk cargoes in coastal trades.

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