Rand Logistics Inc. (Rand) has entered into a stock purchase agreement to acquire American Steamship Co. (ASC) from GATX Corp. Rand is an affiliate of American Industrial Partners (AIP) and provides dry bulk shipping services throughout the Great Lakes region.
ASC operates the largest fleet of US flagged vessels on the Great Lakes, providing waterborne transportation of over 27 million tpy of dry bulk commodities such as iron ore, coal and limestone on vessels ranging in size from 634 ft to over 1000 ft. The combination of Rand and ASC will create a large and diverse fleet on the Great Lakes, serving different and highly complementary markets with multiple self-unloading vessel classes.
Peter Coxon, CEO of Rand, said: "The company is excited about this transformative combination of two of the leading vessel operators on the Great Lakes. This strategic union will create significant additional shipping capacity through network efficiencies and repositioning of the respective fleets, all of which will allow the resulting company to further improve its customer service and offer additional flexibility and shipping capacity to its customer base."
Jason Perri, Partner of AIP and Chairman of Rand's Board of Directors, added: "ASC is thrilled to partner with management and further increase its investment in the Great Lakes shipping and logistics ecosystem. ASC looks forward to integrating its asset quality and track record of reliability, safety and service in moving raw materials for its customers with Rand, and creating a new and larger platform for growth under the company’s ownership."
About Rand Logistics:
Rand Logistics, Inc. is a leading provider of bulk freight shipping services throughout the Great Lakes region. Through its subsidiaries, the Company operates a fleet of three conventional bulk carriers and eleven self-unloading bulk carriers including three tug/barge units. The Company is the only carrier able to offer significant domestic port to port services in both Canada and the U.S. on the Great Lakes. The Company's vessels operate under the U.S. Jones Act which reserves domestic waterborne commerce to vessels that are U.S. owned, built and crewed and the Canada Coasting Trade Act which reserves domestic waterborne commerce to Canadian registered and crewed vessels that operate between Canadian ports.
About American Industrial Partners:
American Industrial Partners is an operationally oriented private equity firm that makes control investments in industrial businesses serving domestic and global markets. The firm has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, AIP has completed over 70 transactions and currently has $7 billion of assets under management on behalf of leading pension, endowment and financial institutions.