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SEARCHThe Kenan Advantage Group is increasing its penetration into the dry bulk transportation business with the purchase of Northern Dry Bulk Inc.
The Northern Dry Bulk deal is part of KAG’s strategic growth initiatives to expand into new end markets.
Photo: KAG
The Kenan Advantage Group is increasing its penetration into the dry bulk transportation business with the purchase of Northern Dry Bulk Inc.
Northern Dry Bulk is based in Clare, Michigan, and specializes primarily in the transportation and storage of plastic resins for automotive, packaging, electronic and other end markets in the U.S. and Canada.
John Rakoczy, KAG executive VP of specialty products, called the acquisition “a definitive entrance into the dry bulk transportation business for our company.”
The North Canton, Ohio-based company traditionally has focused on liquid tanker operations.
KAG will acquire 36 tractors, 91 trailers, two terminals with two maintenance bays, extensive warehouse space and transloading capabilities to continue expanding its service offerings. Northern Dry Bulk’s drivers, technicians, and operational support members will join the KAG team.
The deal will allow KAG to serve current liquid bulk customers who also manufacture and distribute dry bulk materials, Rakoczy pointed out.
The Northern Dry Bulk deal is part of KAG’s strategic growth initiatives to expand into new end markets.
KAG operates through six groups consisting of KAG Energy, KAG Specialty Products, KAG Food Products, KAG Merchant Gas, KAG Canada and KAG Logistics. The company has terminal and satellite locations in 42 states and seven Canadian provinces and territories.
Two recent deals grew its food-grade products business.
Last fall, the company acquired Idaho Milk Transport Inc., an Idaho-based company that transports bulk dairy, edible oils, juices and other liquid food grade products throughout the U.S. and Canada.
The IMT deal expanded KAG’s Food Products division, adding 162 tractors, 327 specialized trailers and five facilities located in Idaho, Washington, and California, along with approximately 160 professional drivers and 40 operational and administrative professionals joining KAG’s Food Products team.
And in December, the acquisition of Florida Food Tankers expanded KAG’s liquid food delivery footprint in Florida along with significantly strengthening its citrus juice end market business.
Lake Wales, Florida-based FFT specializes in intrastate bulk food transportation and logistics, primarily of citrus juices in Florida. FFT operates a two-bay tank wash facility and a maintenance shop, bringing a total of 17 tank wash facilities across the country within the KAG Food Products’ operations.
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