Groendyke Transport is buying the tank truck assets of McKenzie Tank Lines, a deal Groendyke says is the largest acquisition in its history and significantly expands its presence in the Southeast. Both companies are tank truck carriers that specialize in hauling petroleum products, chemicals and other bulk hazardous materials.
The acquisition will increase Groendyke's terminal count from 30 to more than 40 and will increase the company's driver count by about 200 to approximately 1,150. The addition of MTL's business is expected to increase Groendyke's revenues by more than $40 million in 2019 to approximately $280 million. The companies anticipate a closing date of Jan. 1, 2019.
"It has been our long-time goal to expand our operations in the Southeast," said Greg Hodgen, Groendyke president. "Our two companies have so much in common – from history to culture and values to emphasis on safety – this deal made perfect sense. We believe their people will make a great fit with our culture and way of running our business."
Once the transition is complete, Groendyke, which is based in Enid, Oklahoma, will have terminals reaching as far west as Arizona all the way to the East Coast. It will give the company terminals in 15 states, adding Alabama, Florida, South Carolina and North Carolina.
Groendyke is a seven-time winner of National Tank Truck Carriers North American Safety Champion Award. MTL is a good fit for the safety culture, the companies noted in an announcement, pointing out it was one of the first adopters of collision mitigation systems and blind-spot detection systems, and a participant in a public-private partnership in the early 2000s designed to accelerate the development of such technology.
"Our two family-owned companies have long histories and rich traditions in the tank truck industry," MTL CEO Jim Shaeffer said. "Moreover, our companies share a tremendous commitment to our people that includes their safety and well-being. We believe this change will ensure stability for our employees and create tremendous opportunities for them."