Houston-based tank barge operator Kirby Corporation has signed a agreement to acquire the inland tank barge fleet of Savage Inland Marine for approximately $278 million.
Savage’s tank barge fleet consists of 90 inland tank barges with approximately 2.5 million barrels of capacity and 46 inland towboats. The deal includes the assumption of leases.
Savage 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
Closing of the deal is expected by the end of the first quarter.
“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.”
On Thursday, Kirby announced fourth quarter net earnings of $2.8 million. For the 2019 full year, Kirby reported net earnings of $142.3 million, down from 2018’s net earnings of $78.5 million.