HOUSTON, Nov. 1, 2012 /PRNewswire/ -- Kirby Corporation ("Kirby") (NYSE: KEX) announced today the completion of the previously disclosed purchase of 13 barges and seven tugboats from Allied Transportation Company, a subsidiary of Allied Marine Industries, and two affiliated companies. The fleet of offshore barges and tugboats participates in the coastal transportation of petrochemicals, as well as dry sugar products, in the Northeast, Atlantic and Gulf Coast regions of the United States. The purchase price was $116 million in cash, before post-closing adjustments, including $10 million that will be paid contingent on developments with the sugar provisions in the U.S. Farm Bill. The purchase was financed using Kirby's revolving credit facility.
The fleet consists of 10 coastal tank barges with a total capacity of 680,000 barrels, three offshore dry-bulk barges with a total capacity of 48,000 deadweight tons, and seven coastal tugboats. Ninety percent of the tank barges are under term contracts with large petrochemical customers. The barge fleet will be integrated with Kirby's existing coastal and offshore barge operations.
Kirby Corporation, based in Houston, Texas, is the nation's largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, the Gulf Intracoastal Waterway, coastwise along all three United States coasts and in Alaska and Hawaii. Kirby transports petrochemicals, black oil products, refined petroleum products and agricultural chemicals by tank barge. Through the diesel engine services segment, Kirby provides after-market service for medium-speed and high-speed diesel engines and reduction gears used in marine and power generation applications. Kirby also distributes and services high-speed diesel engines, transmissions, pumps, compression products and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for the land-based pressure pumping and oilfield service markets.
Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including cyclical or other downturns in demand, significant pricing competition, unanticipated additions to industry capacity, changes in the Jones Act or in U.S. maritime policy and practice, fuel costs, interest rates, weather conditions, and timing, magnitude and number of acquisitions made by Kirby. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update such statements. A list of additional risk factors can be found in Kirby's annual report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission.
SOURCE Kirby Corporation