February 14, 2007
ACL buys twenty McKinney towboats
American Commercial Lines Inc. (NASDAQ: ACLI) announced today that its subsidiary American Commercial Lines LLC has entered into an agreement to purchase twenty towboats and related equipment from the McKinney group of companies for $15 million in cash.
The transaction will double the size of ACL's Gulf-region operations. The company anticipates hiring approximately 200 former McKinney employees, including certified captains and pilots.
Commenting on the agreement, Richard A. Mitchell, Senior Vice President Corporate Strategy, stated "The purchase of the McKinney assets will improve ACL's vessel operations in the Gulf region. It is an important step in our strategy to enhance the services we offer to our customers."
ACL President and CEO, Mark R. Holden added "The McKinney companies have been important partners with ACL for many years. We are grateful for the commitment and dedicated service they have provided and welcome the McKinney employees who will be joining the ACL team. As ACL continues to grow, the company will need additional boat power and employees. This purchase is an example of how inorganic growth can facilitate organic growth."
Since the majority of the boats are currently operating on charters to ACL and other customers, it is expected that the purchase will have an immaterial impact on 2007 earnings per share.
American Commercial Lines Inc., headquartered in Jeffersonville, Indiana, is an integrated marine transportation and service company operating in the United States Jones Act trades, with approximately $940 million in revenues and approximately 2,750 employees as of December 31, 2006.
The McKinney companies, which include McKinney Towing Inc., Slidell Towing Inc., McKinney Marine Inc., McKinney Inland LLC, McKinney Harbor Towing Inc., McKinney Industries Inc., and McKinney Salvage and Heavy Lift, are a third-generation organization that provide towing, harbor, salvage and related services on the U.S. inland waterways. The companies are headquartered in Baton Rouge, Louisiana.