Enterprise Buys Assets of Howell Transportation
The purchase will add 60 drivers, 53 tractors and 85 trailers to Enterprise’s fleet, based in Baytown, Texas.
President Mike Stark said the transaction would contribute at least $8 million in revenue to Enterprise, which did about $82 million in business in 1998.
“The Howell assets and customer base provide an ideal fit to our existing operations, and an opportunity for continued expansion,” Mr. Stark said.
Enterprise is a division of Enterprise Products Co., which is engaged in refining, processing, storing and marketing natural gas liquids.
Lodestar Logistics Corp., the parent of Howell, will use proceeds from the sale to expand the company’s logistics management and railroad-related activities.
Its chairman, Bradley N. Howell, said the sale “marks an important milestone.”
“We will now be able to devote our full attention to our opportunities to support the chemical industry with numerous rail-related service offerings,” he said.
Lodestar manages about 13,000 rail cars, mostly covered hopper cars. It also provides cleaning, inspection, maintenance and tracking services for petrochemical plants in the Houston and Gulf Coast region.
“We are retaining a logistics management function,” Mr. Howell said. “We will tender loads, provide carrier management, offer some rate protection for shippers and contract out the trucking part of the business.”
Howell started as a private fleet for Howell Corp., an oil and gas production company founded by Mr. Howell’s father. Bradley Howell purchased the trucking business in 1995.
