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). The transaction closed on November 15.
RTL-Westcan is a leading hauler of bulk commodities in western and northern Canada, serving more than 500 customers across its operating region. Canton OH-based KAG specializes in the logistics and transportation of fuels, chemicals and merchant gases.
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, according to KAG executives.
Founded in 1964, Edmonton AB-based RTL-Westcan 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 workers 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, KAG chief executive officer: "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."
President and Chief Executive Officer of RTL-Westcan Group, Grant Mitchell, says the strategic fit of the two premier North American companies was excellent. "KAG adheres to the same RTL-Westcan culture of exceptional customer service and an uncompromised commitment to safety,” Mitchell says. “Our core competencies align to make this merger a great outcome for our employees, and most importantly, our valued customers who are accustomed to the execution of safe and reliable services. The transaction also provides both companies with the capability to better serve our customers who are engaged in operations both in the United States and in Canada."
Nash adds: "This is a tremendous opportunity to provide a broader suite of services to our current customers and offer further value-added services to RTL-Westcan customers. We intend to focus on growing with the combined customer bases while also pursuing strategic acquisitions that enhance our capabilities. Keeping true to our strategy of acquiring 'best in class' companies, we are proud to have Grant Mitchell and the RTL-Westcan Group's talented employees represent KAG as the flagship company for our newly established Canadian platform. "
