Kenan Advantage Group Reaches Agreement to Purchase Transport Service Co.
CANTON, OH, February 19, 2008 – Kenan Advantage Group (KAG), the nation’s largest bulk transportation and logistics provider to the petroleum and niche’ chemical industries, today announced an agreement to purchase Chicago, IL-based, Transport Service Co. (“TSC”). The transaction is anticipated to close by the end of February.
Transport Service Co., founded in 1946 and headquartered in Oak Brook, IL, is a motor carrier supplying bulk distribution services to the chemical and food products industries. TSC operates primarily in the Midwest, Northeast, Southeast and Gulf Coast regions of the United States along with Canada and Mexico. The company conducts business out of 18 terminal locations and employs approximately 750 people including 525 company drivers. TSC operates 550 company-owned tractors, 90 owner-operated tractors and 1,300 specialized, stainless steel trailers. Revenue generated from the company in 2007 was approximately $130 million.
Dennis Nash, President and Chief Executive Officer of KAG stated, “Transport Service is a perfect fit to our business model of dedicated trucks, dedicated schedules and dedicated contracts. TSC also provides us with a stand alone platform to further expand our current chemical transportation operations while providing a tremendous opportunity to grow the food-grade products line. This separate, stand alone platform will also allow KAG to continue to focus on growing our core business of delivering petroleum and renewable fuels.”
“Similar to KAG, TSC is also recognized as having one of the top safety programs in the industry,” continued Mr. Nash. “We seek out companies that adhere to an unwavering commitment to safety; offer exceptional value-added services to their industry; exemplify a strong image; and, are led by a superior management team. We are pleased that Transport Service will be joining our successful team.”
According to Robert Schurer, President of Transport Service, Co., “The partnering of our company with the Kenan Advantage Group will provide our employees further growth opportunities while adding services that will complement and grow our customer base. We are very proud of the exemplary reputation our organization has achieved over the years along with the desire to be the best in our industry. With that said, it was important that we teamed up with a company that had similar qualities and aspirations. We look forward to a successful future together.”
Kenan Advantage Group operates nationwide through its subsidiaries: Advantage Tank Lines, BXI, KAG West, Kenan Transport, Klemm Tank Lines, North Canton Transfer, and Petro-Chemical Transport. With this acquisition, KAG’s fleet now consists of more than 3,100 power units and 4,100 trailers. KAG also provides specialized supply chain logistics services through KAG Logistics and KAG Ethanol Logistics (www.kaglogistics.com).
