KIRBY CORP acquired Stewart & Stevenson LLC for approximately $756.5 million (at close; ~$710M announced), a transaction completed in September 2017, structured as combination (cash + Kirby common stock).
Stewart & Stevenson LLC operates in Distribution and services, is based in Houston, Texas, USA (national and global distribution footprint). Substantially all of the assets and businesses of Stewart & Stevenson LLC, a subsidiary of Houston-based Parman Capital Group and a globally recognized engine/equipment distribution and services company with 115 years of history. Funded with 5.7 million Kirby shares valued at $366.6 million plus $377.0 million cash, with $12.9 million of assumed debt.
The combination of Stewart & Stevenson with Kirby's existing distribution and services business has the potential to unlock significant strategic value, dampen overall volatility in the business, and create a larger organization at an opportune time, as the industry continues to recover from a deep downturn.
Expanded Kirby's distribution network nationally and added engineering/technological capacity to serve a large industrial customer base. Larger combined distribution and services organization with reduced overall business volatility. Kirby distribution and services segment
The acquisition of Stewart & Stevenson significantly expands the geographic footprint and capabilities of our distribution and services business. This transaction creates one of the largest distribution networks in the country with the engineering and technological capacity to successfully address the complex requirements of a large customer base in a competitive national and global environment.David Grzebinski, President and CEO, Kirby Corporation
The combination of Stewart & Stevenson with Kirby's existing distribution and services business has the potential to unlock significant strategic value, dampen overall volatility in the business, and create a larger organization at an opportune time.Joseph H. Pyne, Executive Chairman, Kirby Corporation
Advisory firms were not disclosed for this transaction.