Campbell Acquires NGL’s Towboat and Barge Fleet
Houston, Penn.-based Campbell Transportation Company, Inc. (CTC) on Monday announced it has signed a definitive purchase agreement to acquire the majority of the marine assets owned by NGL Marine, LLC, a subsidiary of Tulsa, Okla.-based NGL Energy Partners LP.
The $111.65 million cash deal, which is expected to be finalized by the end of March, includes a fleet of 13 towboats and 25 tank barges that provide waterborne transportation of refined products and crude oil for customers on the Gulf Coast, NGL said. A majority of the fleet will go to Campbell, and another portion will go to an unnamed buyer.
For Campbell, the acquisition marks another step forward in its strategic plan to diversify its marine business line, the company said in a statement.
Once completed, CTC will own or operate more than 1,250 dry and wet barges throughout the inland waterway system, including 95 tank barges. The fleet is supported by the operation of more than 60 towboats.
NGL said the move will help it to reduce debt. "This non-core asset sale should allow NGL to further reduce leverage by March 31, 2023, as these proceeds will be used for debt reduction," said Mike Krimbill, NGL’s CEO. "Our near-term focus continues to be reducing absolute debt and leverage."