Southeast Indiana Company Adding Barge Business
The century-old company currently has about 2
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowJeffersonville-based American Commercial Lines Inc. has agreed to acquire the commercial barge business unit of Ohio-based American Electric Power (NYSE: AEP). ACL Chief Executive Officer Mark previously served as head of AEP’s River Operations for 10 years. He calls the proposed combination a "strong strategic fit."
Knoy has been with ACL since 2011.
The deal is expected to close by the end of the year. ACL says the businesses are "highly complementary" and the resulting company would create "significant synergy opportunities."
AEP River Operations, based in Missouri, says it delivers 45 million tons each year. It has locations in Kentucky, Louisiana and Algiers.
Knoy says "ACL and AEP River Operations are highly complementary businesses that share the same business practices and commitment to safety and customer service. I know the fleet, the operations, the people and the culture on both sides and I can’t think of a better fit. We are excited to join together and create something special." He adds "there is a great deal of value to be gained through increased fleet velocity and tow density, as well as in purchasing, port services and a more efficient cost structure. I’m highly confident in our ability to integrate the businesses and realize those benefits."
ACL is owned by California-based Platinum Equity. The firm believes the move will grow ACL’s customer base and footprint.
