Rand wraps up American Steamship acquisition
Rand Logistics has completed the acquisition of transportation company American Steamship Company (ASC) from GATX Corporation.
The transaction, valued at about $260 million in cash proceeds, is subject to customary post-closing adjustments, according to GATX.
Rand is a portfolio company of American Industrial Partners (AIP) and provides dry bulk shipping services throughout the Great Lakes region. ASC operates the largest fleet of US-flagged self-unloading vessels on the Great Lakes.
As explained, the combination of Rand and ASC moves almost 50 million tons annually of dry bulk commodities such as iron ore, coal and limestone on vessels ranging in size from 634 feet to over 1,000 feet.
“This transaction is a game-changer for both Rand and our customers. Our combined 24-vessel fleet gives us the capability to meet almost every type of dry bulk transportation need on the Great Lakes,” Peter Coxon, Chief Executive Officer of Rand, commented.
“ASC brings a rich history, superior assets, a safe and efficient operation, and a great team which complement our operations and will benefit our customers in so many tangible ways, such as increased overall transportation capacity through fleet synergies and greater number of loading opportunities.”
“ASC is thrilled to be a part of the creation of a truly unique company with the scale and flexibility to meet the diverse needs of the Great Lakes region,” David Foster, President of American Steamship Company, said.
“ASC brings new asset classes to the combined company along with the … crews and shoreside personnel that operate them, all making the combined company one of the premier marine transportation companies in North America.”
GATX, a railcar lessor, expects to use the net sales proceeds to repay outstanding indebtedness under its $250 million revolving credit facility.