Kenan Advantage Group Acquires RTL-Westcan Group
Kenan Advantage Group (“KAG”), North America’s largest tank truck transporter and logistics provider, announced that it has completed the acquisition of RTL-Westcan Group (“RTL-Westcan”).
RTL-Westcan is a leading hauler of bulk commodities in western and northern Canada, serving more than 500 customers across its operating region. KAG specializes in the logistics and transportation of fuels, chemicals and merchant gases.
The transaction closed on November 15, 2013. KAG funded the acquisition with interim borrowings under its senior secured credit facility. KAG intends, subject to market conditions, to refinance a portion of its senior secured credit facility with US and Canadian dollar term loans and unsecured high yield notes.
Founded in 1964, the Edmonton, Alberta-based company transports liquid and dry bulk commodities including petroleum, ammonia, propane, liquid asphalts, fertilizers, grains, limes, salt, sulfur, mining commodities and lumber products. These products are used for numerous applications within a diverse range of end markets including petroleum, mining, agriculture and oilfield production. The company also serves the construction industry, engaged in civil and industrial construction in the Northwest Territories.
RTL-Westcan employs approximately 1,000 employees including 560 dedicated drivers and 250 field employees. The company operates a specialized fleet of approximately 480 tractors and 2,000 trailers conducting business out of 16 strategically located truck terminals in Alberta, Saskatchewan, British Columbia and the Northwest Territories. The company also operates six dry bulk warehouses, three transload facilities and a 160-million liter fuel tank farm.
According to Dennis Nash, Chief Executive Officer of KAG, “The acquisition of RTL-Westcan further positions KAG as the elite North American bulk transportation services and logistics provider. The expansion into Canada extends our footprint to better serve a broader customer base while capitalizing on a highly attractive marketplace. Western Canada is a growth region with increasing demand for transportation and logistics services as a result of expanding energy markets, increased mining activity and strong macro drivers.”
Kenan Advantage Group (www.thekag.com) operates through its five groups consisting of the Fuels Delivery Group, Specialty Products Group, Merchant Gas Group, Logistics Group and KAG Canadian Group. KAG’s fleet consists of approximately 6,200 power units and 9,700 trailers. KAG also provides specialized supply chain logistics services through KAG Logistics and KAG Ethanol Logistics (www.kaglogistics.com).
The RTL-Westcan Group of companies (www.westcanbulk.ca) specializes in hauling liquid and dry bulk commodities, freight hauling and construction services. The company operates out of 16 locations throughout Alberta, British Columbia, Saskatchewan and Northwest Territories.
Category: Featured, General Update, Management
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