Marquette Transportation has new private equity owner

APRIL 2, 2015 – Private equity firm KRG Capital Partners has sold its majority stake in  Paducah, KY, headquartered tug and towboat operator Marquette Transportation Company Holdings, LLC to BDT Capital Partners, LLC, a private equity arm of BDT & Company, LLC, creating a long-term partnership with current minority shareholders, including CEO and President John Eckstein, other members of the Eckstein family, and Marquette management.”

Additional terms of the deal were not disclosed but Reuters had earlier reported that Marquette had been exploring a sale worth a potential $1 billion, with Dell CEO Michael Dell among those nterested.

BDT Capital Partners provides family-owned and entrepreneurially led companies with long-term, differentiated capital. Based in Chicago, the firm manages investment funds of more than $8 billion, with an investor base that has the ability to invest significant additional capital. Its affiliate, BDT & Company, is a merchant bank that works with family and founder-led businesses to pursue their strategic and financial objectives. BDT & Company provides solution-based advice and access to an extensive network of world-class closely held businesses.

The “BDT” is Chairman and CEO Byron David Trott. He is a former Vice Chairman of Goldman Sachs with all sorts of connections with Warren Buffett, whom he describes as one of his mentors. You could wish he was your banker, because that would make you one of the super rich.

“We met the BDT team as we were beginning to think about a capital partner for the next 10+ years,” said John Eckstein. “We were attracted to their long investment horizon and their strategic approach to partnering with me and the Marquette management team. We are very excited about the next decade for Marquette.”

“We are thrilled to partner with John, his family, and the Marquette management team,” said Mr. Trott. “Marquette has built its industry-leading position by investing in a world class fleet and providing excellent customer service. Our long-term capital will provide a solid foundation and long runway to pursue a number of exciting growth initiatives.”

Marquette Transportation is a leading provider of towing services on the inland waterways. Through its three operating divisions – River, Gulf-Inland and Offshore – the company provides integrated transportation solutions across multiple waterways stretching from Minneapolis and south of Chicago to New Orleans, across to Houston, Corpus Christi and Florida, as well as the Gulf of Mexico and the Eastern Seaboard.

Its River Fleet has 50+ line haul vessels, from 4,000 – 9,000 HP, its Gulf-Inland fleet has 60+ inland towing vessels, up to 3,400 HP and its Offshore Fleet has 10 offshore tugs, ranging from 2,400 – 5,000 HP Class