Xcel Bulk Logistics recently acquired Spotted Lakes, dba 1845 Commercial Bulk Division, in an all-cash asset purchase transaction, which Xcel says forms the foundation for its launch of XBL Industrial Materials.
The company’s new corporate division will complement its existing XBL Construction Materials division, which serves bulk cement customers throughout the Southeast. The new division will be based in the Dallas-Fort Worth Metroplex.
“We are excited to take this strategic step for Xcel Bulk Logistics and to have the opportunity to bring ‘Xcellence in Safety, Services, and Solutions’ to a new market via XBL Industrial Materials,” said Rick Hoyle, president of XBL. “We look forward to earning the business and trust of our new customers from Day 1, and I am particularly eager to use our larger, diversified platform to grow the available services in the capacity-constrained bulk materials space.
“We are pleased to carry on the strong legacy of 1845’s Commercial Bulk Division and especially proud to count their team of excellent drivers as part of our growing organization. Together we will work tirelessly to deliver on our commitments for customers as vital suppliers to their operations.”
“We are proud of what we have achieved over the past four years building 1845’s Commercial Bulk division into a customer-focused service provider that customers can rely on and drivers are excited to work for,” said Robbie Ballard, president of 1845 and now a special advisor to the board of XBL Holdings. “In thinking about the future and opportunities available in this market, I believe that the ownership and leadership of XBL are committed to continue our legacy of service to dry bulk customers while investing in the equipment and technology to scale with them over time.
“On a personal level, we are grateful for the drivers that have contributed so much to our success, and I am confident they will find a great home in XBL’s profitable, growing, and safe business.”
The companies said the acquisition will provide the following strategic benefits:
- Diversified, stable platform: To be a long-term partner for customers as well as a great place to work for drivers and office staff, Xcel must operate a business that can withstand the variations of the bulk materials market and the economy as a whole. As a diversified business, XBL will offer more stable work for drivers through economic cycles by deploying drivers across multiple divisions, better benefits for all employees, and more resilient financial positioning that all stakeholders can rely on.
- Economies of scale: Investments in rolling stock, safety systems, and technology require large capital programs that can benefit from being shared across a broader organization. This ensures the company is continually advancing safety and operations to improve customer outcomes while growing its service offerings. In addition, a larger footprint will benefit procurement, including fuel and insurance, which improves cost structure and benefits to customers.
“Industrial Materials customers have come to know our commitment to the professional and safe delivery of their cargo, and we are enthusiastic about the additional capacity and scale we will be able to deploy as part of the new XBL Industrial Materials,” said Randy Plotner, former vice president of business development for 1845 who joins XBL Industrial Materials as VP of commercial development.
Added Galen Murphy, XBL co-founder and senior VP of commercial development: “While XBL has been focused on the dry cement market since its founding, our management team and operations staff have a 20-plus-year career in industrial materials. We know these markets and their demands, and we look forward to helping our customers solve some of the toughest challenges in today’s tight transportation market.
“We look forward to offering our captured capacity model, developed for use in XBL Construction Materials, to the XBL Industrial Materials customers as a way to immediately lock in additional dedicated capacity with long-term agreements.”