Houston-based domestic tank barge operator Kirby Corporation has agreed a deal to acquire marine and offshore manufacturer and distributor Stewart & Stevenson for around $710m.
Kirby says the acquisition significantly expands the footprint and capabilities of its distribution and services business, creating one of the largest distribution networks in the United States.
Joseph H. Pyne, executive chairman of Kirby, commented: “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 organization at an opportune time, as the industry continues to recover from a deep downturn. We are pleased to welcome the management and employees of a globally-recognized company with 115 years of history. We welcome the support of Parman Capital Group as a major shareholder of Kirby Corporation.”
The purchase will be funded by both drawing $355m down on a revolving credit facility and the issuing of $255m worth of Kirby common stock.
Closing of the acquisition is scheduled for the third quarter of 2017.