Continuing its strategy of growth and diversification through acquisitions, Campbell Transportation Company Inc. announced March 6 that it has signed a definitive purchase agreement to acquire the majority of the marine assets owned by NGL Marine LLC by the end of March. “This acquisition will be another step forward in Campbell’s strategic plan to diversify its marine business line,” the company said in a press release.
In its own press release, NGL said the sales price for its assets in two separate transactions is $111.65 million in cash.
Once this acquisition is completed, CTC will own or operate more than 1,250 barges throughout the inland waterway system, including 95 tank barges. The fleet includes assets working in both the dry cargo and liquid cargo trades and is supported by the operation of more than 60 towboats.
NGL Marine is a subsidiary of Tulsa-based NGL Energy Partners LP, a vertically integrated, full-service midstream provider, which focuses on water services, crude oil logistics, natural gas liquids logistics and retail businesses. It provides solutions for upstream companies, such as marketing crude oil, marketing natural gas liquids, treating produced and flow back water disposal or recycling. NGL Marine was formed in 2013 when NGL Energy Partners bought and merged Third Coast Towing and Cierra Marine.
“I want to thank our Marine employees for their hard work and service over the years to build one of the best fleets in the business. This non-core asset sale should allow NGL to further reduce leverage by March 31, 2023, as these proceeds will be used for debt reduction.” said Mike Krimbill, NGL’s CEO. “Our near-term focus continues to be reducing absolute debt and leverage.”
BofA Securities, Inc. is serving as NGL’s financial advisor; and McAfee & Taft of Tulsa, Oklahoma is serving as NGL’s outside legal counsel.
NGL Marine’s 12 towboats that will now become Campbell towboats are Subchapter M compliant. The mv. Evelyn James is SQE certified.
Caption for photo: The A.M. Raymond, built for NGL Marine by Main Iron Works, was christened in 2020. It is one of 12 towboats acquired by Campbell Transportation.