Edmonton, Alberta-based RTL Westcan Group, a bulk commodity hauler operating in western and northern Canada, has been bought by Kenan Advantage Group, a tank truck transporter and logistics provider based in North Canton, Ohio. The financial terms of the deal were not released. The acquisition of RTL Westcan provides an exit to Canadian private equity firm TriWest Capital Partners. TriWest invested in RTL-Robinson Enterprises Ltd in partnership with management in 2006, and subsequently backed RTL’s merger with Westcan Bulk Transport Ltd in 2007. Earlier this month, the company agreed to sell 10 industrial properties to Edgefront Realty Corp for the equivalent of $68 million.
Kenan Advantage Group Acquires RTL-Westcan Group
NORTH CANTON, Ohio, Nov. 15, 2013 /CNW/ – Kenan Advantage Group (“KAG”), North America’s largest tank truck transporter and logistics provider, announced that it has completed the acquisition of RTL-Westcan Group (“RTL-Westcan”). RTL-Westcan is a leading hauler of bulk commodities in western and northern Canada, serving more than 500 customers across its operating region. KAG specializes in the logistics and transportation of fuels, chemicals and merchant gases.
The transaction closed on November 15, 2013. KAG funded the acquisition with interim borrowings under its senior secured credit facility. KAG intends, subject to market conditions, to refinance a portion of its senior secured credit facility with US and Canadian dollar term loans and unsecured high yield notes.
Founded in 1964, the Edmonton, Alberta-based company transports liquid and dry bulk commodities including petroleum, ammonia, propane, liquid asphalts, fertilizers, grains, limes, salt, sulfur, mining commodities and lumber products. These products are used for numerous applications within a diverse range of end markets including petroleum, mining, agriculture and oilfield production. The company also serves the construction industry, engaged in civil and industrial construction in the Northwest Territories.
RTL-Westcan employs approximately 1,000 employees including 560 dedicated drivers and 250 field employees. The company operates a specialized fleet of approximately 480 tractors and 2,000 trailers conducting business out of 16 strategically located truck terminals in Alberta, Saskatchewan, British Columbia and the Northwest Territories. The company also operates six dry bulk warehouses, three transload facilities and a 160-million liter fuel tank farm.
According to Dennis Nash, Chief Executive Officer of KAG, “The acquisition of RTL-Westcan further positions KAG as the elite North American bulk transportation services and logistics provider. The expansion into Canada extends our footprint to better serve a broader customer base while capitalizing on a highly attractive marketplace. Western Canada is a growth region with increasing demand for transportation and logistics services as a result of expanding energy markets, increased mining activity and strong macro drivers.”
President and Chief Executive Officer of RTL-Westcan Group, Grant Mitchell, indicated the strategic fit of the two premier North American companies was excellent. Mr. Mitchell said, “KAG adheres to the same RTL-Westcan culture of exceptional customer service and an uncompromised commitment to safety. Our core competencies align to make this merger a great outcome for our employees, and most importantly, our valued customers who are accustomed to the execution of safe and reliable services. The transaction also provides both companies with the capability to better serve our customers who are engaged in operations both in the U.S. and in Canada.”
Mr. Nash continued, “This is a tremendous opportunity to provide a broader suite of services to our current customers and offer further value-added services to RTL-Westcan customers. We intend to focus on growing with the combined customer bases while also pursuing strategic acquisitions that enhance our capabilities. Keeping true to our strategy of acquiring ‘best in class’ companies, we are proud to have Grant Mitchell and the RTL-Westcan Group’s talented employees represent KAG as the flagship company for our newly established Canadian platform.
Kenan Advantage Group (www.thekag.com) operates through its five groups consisting of the Fuels Delivery Group, Specialty Products Group, Merchant Gas Group, Logistics Group and KAG Canadian Group. KAG’s fleet consists of approximately 6,200 power units and 9,700 trailers. KAG also provides specialized supply chain logistics services through KAG Logistics and KAG Ethanol Logistics (www.kaglogistics.com).
The RTL-Westcan Group of companies (www.westcanbulk.ca) specializes in hauling liquid and dry bulk commodities, freight hauling and construction services. The company operates out of 16 locations throughout Alberta, British Columbia, Saskatchewan and Northwest Territories.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
SOURCE Kenan Advantage Group
For further information:
Patricia A. Harcourt, 800-969-5419, email@example.com
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