Kenan Advantage Group Enters Dry Bulk Sector
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Kenan Advantage Group bought Northern Dry Bulk for an undisclosed sum, marking its first major foray into dry bulk haulage, the top-ranked tank transporter said.
North Canton, Ohio-based KAG ranks No. 22 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. It is No. 1 on the tank truck/bulk carrier list.
Clare, Mich.-based Northern Dry Bulk specializes in transporting and storing plastic resins for customers in the automotive, packaging and electronic industries in the U.S. and Canada.
“The acquisition of Northern Dry Bulk establishes a definitive entrance into the dry bulk transportation business for our company and perfectly aligns with our strategic growth initiatives to expand into new end markets,” said John Rakoczy, KAG executive vice president of specialty products.
“The transaction also fulfills the needs of many of our current liquid bulk customers who also manufacture and distribute dry bulk materials,” he added.
Northern Dry Bulk brings 36 tractors, 91 trailers, two terminals with two maintenance bays, plus warehouse space and transloading capabilities to the KAG fold.
Acquiring Northern Dry Bulk is KAG’s third acquisition in five months, and typical of wider consolidation in the tank and bulk sector as major players pick up smaller rivals and fill holes in their portfolio.
No. 3 ranked Tank Truck/Bulk Carrier Trimac Transportation Ltd. bought four carriers in 2023.
Under the Umbrella
Kenan Advantage Group has six divisions within the company:
KAG Energy
KAG Specialty Products
KAG Food Products
KAG Merchant Gas
KAG Canada
KAG Logistics
Earlier in KAG’s shopping spree, it acquired Florida Food Tankers Inc. in December. Lake Wales, Fla.-based FFT specializes in intrastate bulk food transportation and logistics, primarily citrus juices in Florida.
KAG said the deal expanded its liquid food delivery footprint in Florida along with “significantly strengthening” its citrus juice business.
In October, KAG bought Idaho Milk Transport Inc. Burley, Idaho-based IMT transports bulk dairy, edible oils, juices and other liquid food grade products across North America.
That deal, according to Tyler Coventry, executive vice president of food products, beefed up the company’s liquid food grade operations, primarily in the dairy sector, as well as expanded KAG’s Pacific Northwest presence.
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IMT added about 160 drivers and 40 operational and administrative professionals to KAG’s ranks as well as 162 tractors, 327 specialized trailers and five facilities in Idaho, Washington and California.
Before the recent flurry of deals, the last acquisition by the company was the purchase of Connectrans Logistics Inc. in October 2022. Toronto-based Connectrans specialized in logistics for energy commodities, renewable fuels, specialty products and food products.
Earlier in 2022, KAG bought Lafayette, La.-based American PetroLog, which served the petrochemical industry’s logistics, transportation, storage and transloading needs.
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