Kirby completes $116 million acquisition
Houston, Texas based barge operator Kirby Corp. (Kirby) announced Thursday it has completed the purchase of 13 barges and seven tugboats from Allied Transportation Company, and two affiliated companies, Ship & Bunker reports.
Kirby said the $116 million cash deal included $10 million that will be paid contingent on developments with the sugar provisions in the U.S. Farm Bill, and was financed using it's revolving credit facility.
The acquisition was previously announced last month with Joe Pyne, Kirby's Chairman and Chief Executive Officer, saying at the time that "Allied has one of the most complementary coastal fleets to Kirby's existing coastal and inland operations."
Ninety percent of the tank barges are under term contracts with large petrochemical customers, the statement said.
The barge fleet will be integrated with Kirby's existing coastal and offshore barge operations.
On Monday the tank barge operator said it was "pleased" with its third quarter 2012 performance that saw profits for the three months ended September 30, 2012 rise to $53.1 million.