CLIENT OBJECTIVES
Jantran was a well managed, highly profitable Mississippi and Arkansas River-based towing business that was regionally well-known and highly respected with over 30 years of Mississippi river experience and a staff of 250+ employees.
The Company generated increasing tow volumes every year in all measures, including the number of barges towed (both loaded and empty), total barge miles, and total tonmiles.
The Company’s primary customers were barge companies hauling agricultural dry goods (75%) and manufacturing materials (25%). The Company had a well diversified customer base with strong, long-term relationships.
COMPANY OVERVIEW
Jantran was a well managed, highly profitable Mississippi and Arkansas River-based towing business that was regionally well-known and highly respected with over 30 years of Mississippi river experience and a staff of 250+ employees.
The Company generated increasing tow volumes every year in all measures, including the number of barges towed (both loaded and empty), total barge miles, and total tonmiles.
The Company’s primary customers were barge companies hauling agricultural dry goods (75%) and manufacturing materials (25%). The Company had a well diversified customer base with strong, long-term relationships.
CREATING VALUE
FRG ran a comprehensive two-pronged process to identify both financial and strategic acquirers that provided a good operating fit for the owners that resulted in multiple indications of interest and LOI's.
Initially, a selection of a private equity group was made and due diligence and contract negotiations were initiated, however, after several months invested in the process a determination was made by the FRG team and the owners that a strategic acquirer would be a better fit for the company's goals.
A second strategic party that was interested in the company was contacted by FRG and an LOI was quickly agreed to, beginning a second round of diligence and contract negotiations that were proceeding on schedule when regulatory changes impacting another part of the aquirer's business created a logjam in the approval process for the transaction necessitating the buyer's withdrawal from the process.
Due to FRG's prior relationships with industry players we were able to bring the Bruce Oakley Company to the process and quickly conclude the diligence and negotiation of agreements resulting in a very fair and beneficial transaction for all parties.
JANTRAN
I am extremely pleased with the outcome of the sale to Bruce Oakley. We desired a synergistic transaction with a firm that shared our core values. The Falls River Group team did an outstanding job in completing a transaction that met our requirements.
JANTRAN
