Savage buys Settoon Towing's liquid tank barges

FEBRUARY 8, 2017 — Savage Inland Marine, LLC, a subsidiary of Savage Companies, has agreed to purchase marine assets from Settoon Towing, LLC's Liquid Bulk division that include 35 towboats and 63 liquid tank barges with a total capacity of nearly 2 million barrels. The purchase does not include Settoon Towing's Gathering & Storage and Logistics & Vessel Management business lines.

Savage Inland Marine will use the marine assets to transport a variety of liquid products on the Intracoastal and inland waterways, operating out of south Louisiana. As part of the agreement, Savage Inland Marine expects to hire approximately 250 current Settoon employees.

"These strategic assets will strengthen our ability to serve customers in the inland waterway. We look forward to welcoming the Settoon employees involved in this business segment, as Savage Team Members," said Kirk Aubry, Savage President and Chief Executive Officer. "During a brief transitional period, we will be working closely with Settoon under an operating agreement that will ensure a seamless transition for the customers we serve."

With existing operations in Orange County, Texas, Savage Inland Marine currently provides monitored barge fleeting, operates inland push boats and provides dock services on the Neches River.

Savage Inland Marine is an American Waterways Operators member and AWO accredited Responsible Carrier. It is also a member of the Texas Waterway Operators Association, Gulf Intracoastal Canal Association, Mississippi Valley Trade & Transport Council and Oil Companies International Marine Forum.

"Marine transportation continues to be among the lowest-cost and safest methods for moving freight," said Aubry. "With the country's petrochemical renaissance and expansion of refineries and other facilities along the Intracoastal and inland waterways, we see a bright future for barge transportation in the Gulf Coast and beyond."

Russ A. Settoon, Settoon's Chairman and Chief Executive Officer, commented, "This sale positions us to better serve our customers in the Gathering & Storage and Logistics & Vessel Management divisions where we have been providing first class marine transportation since 1968. We look forward to growth in the future and will continue to invest in our people and our equipment to deliver the safest and most reliable marine transportation to all our customers."

Settoon's Gathering & Storage segment consists of over 25 boats and 60 barges used to transport and store crude oil and produced water throughout the inland waterways of Gulf Coast. Settoon's Logistics & Vessel Management segment provides management and operation of third party vessels including navigation, crewing, training, maintenance and regulatory compliance.

RBC Capital Markets and Simmons & Company were financial advisors to Settoon Towing on this transaction.

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