JEFFERSONVILLE — American Commercial Lines on Thursday announced it has signed an agreement to acquire AEP River Operations from American Electric Power.
AEP River Operations is a commercial inland barge company delivering about 45 million tons of products annually, according to an ACL news release. The company is based in Chesterfield, Mo., with operations in Paducah, Ky.; and Convent, Algiers and Belle Chasse, La.
ACL, a portfolio company of Platinum Equity, is based in Jeffersonville, and is one of the most diversified marine transportation service companies in the United States.
ACL President and Chief Executive Officer Mark Knoy ran AEP River Operations for a decade before joining ACL in 2011. He said the proposed acquisition is a strong strategic fit.
"ACL and AEP River Operations are highly complementary businesses that share the same business practices and commitment to safety and customer service," Knoy said in the release. "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."
Knoy said that highly complementary networks and traffic patterns between the two companies create significant synergy opportunities.
"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," said Knoy. "I'm highly confident in our ability to integrate the businesses and realize those benefits."
Paul Tobin, ACL's chief operating officer, and Robert Blocker, ACL's senior vice president of sales and customer service, also spent 10 years at AEP River Operations before joining ACL in 2011 along with Knoy. All three were previously at MEMCO Barge Line, which was purchased by AEP in 2001.
The transaction is expected to close in the fourth quarter of 2015, subject to regulatory approval and certain closing conditions. Terms of the deal were not disclosed.
ACL has approximately 2,700 employees and operates a fleet of approximately 125 towboats and 1,900 barges.