Kenan Advantage Group acquires Jack B Kelley Inc
Sep 7, 2011 11:37 AM
Kenan Advantage Group (KAG), ranked as North America’s largest tank truck transporter and logistics provider for petroleum, specialty products and merchant gas industries in Bulk Transporter’s Gross Revenue Report, has acquired Jack B Kelley Inc (JBK), the largest independent transporter of industrial gases in the United States. The transaction closed on August 31, 2011.
Founded in 1946, the Amarillo, Texas-based company transports nitrogen, hydrogen, oxygen, argon, helium, carbon dioxide and liquefied natural gas (LNG) across the United States, Canada, and Mexico. These gases are used for numerous applications within a diverse range of end markets, including metals and mining, chemical, food and beverage, healthcare, electronics, energy production and many others.
According to Dennis Nash, chief executive officer of KAG, “The acquisition of Jack B Kelley is a perfect strategic fit to our newly formed Merchant Gas Group. Coupled with the acquisition of Quakertown, PA-based Cryogenic Transportation Inc in December 2010, we are now the largest, most qualified and safest transporter of industrial gases in the US. JBK and CTI are great examples of our strategy to acquire only ‘best-in-class’ companies.”
“This is a very specialized business that cannot be entered without an established core competency, which is why we chose to build this platform around the two most experienced carriers in the business,” Nash adds. “With the knowledge and expertise gained through these two companies, we expect to expand this platform by continuing to aggressively grow our core industrial gas business as well as the LNG and CNG distribution business. We are very excited about the opportunities this new platform brings to our company.”
With these two acquisitions, the company’s Merchant Gas Group now has a network of 25 strategically located, full-service terminals across the country, a fleet of approximately 470 cryogenic and specialty trailers and more than 500 drivers trained and dedicated to the merchant gas industry.
Mark Davis, president of JBK, says: “This is a tremendous opportunity for JBK, its employees and customers. The Kelley family established a 66-year legacy of safety and service in the industrial gas distribution industry and we look forward to continuing that tradition as part of KAG. The combination aligns two industry-leading organizations and provides scale and incremental capital to enable JBK to continue to aggressively pursue strategic growth opportunities. This is truly a great transaction for all involved.”
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