CLA’s investment banking team served as the exclusive financial advisor for Kane Transport, Inc., which was acquired by TransWood Carriers, Inc. in a transaction that closed on December 31, 2019.
Kane Transport, Inc., a Midwest premier transporter of petroleum, asphalt, biodiesel, and ethanol, has been acquired by Omaha, Nebraska-based TransWood Carriers, Inc. CLA’s investment banking team served as the exclusive financial advisor to Kane on the transaction. The transaction was announced December 18, 2019, and closed December 31, 2019. Price and terms were not disclosed.
Kane is a Minnesota-based provider of bulk hazardous liquid transportation services. The company’s large fleet of tanker trucks transports numerous grades and formulations of gasoline, biodiesel, liquid asphalt, ethanol, and propane through 12 different hub locations in Iowa, Illinois, Minnesota, North Dakota, and Wisconsin. The company was founded in 1949 by Joseph and Louis Kane as a single-truck operation to transport gas and fuel oil from Minneapolis to western Minnesota and eastern North Dakota. After three generations of family ownership, Kane has grown to become a leading Midwest liquid bulk transportation company with over 150 trucks primarily hauling petroleum products, but also construction and agricultural commodities.
TransWood is an Omaha-based liquid and dry bulk carrier with a national footprint of facilities ranging from Pennsylvania to Nevada and as far south as San Antonio, Texas. According to the Federal Motor Carrier Safety Administration (FMSCA), TransWood has over 800 power units. Founded in 1928, TransWood is owned by President Brian Wood; Wood is the former chairman and a current member of the National Tank Truck Carriers (NTTC) Board of Directors.
“Kane is a strategic addition to the TransWood family,” said Wood. “Kane’s pledge to quality and on-time service, without compromising on safety or environmental stewardship, are major factors in this acquisition.”
Kane’s day-to-day operations will continue, with the majority of the Kane family and current management team remaining in place. Peter Kane will serve as general manager, and Patrick Kane will serve as operations manager. Angela Kane-Haas will step back from her day-to-day role as CFO, and continue working in various board capacities. TransWood also plans to integrate its technology and operational best practices with the goal of enhancing Kane’s ability to serve its customers.
“While we had a number of parties step forward with compelling offers, our family felt it important that we find a partner that not only provided the best home for our dedicated employees, but provided a legacy to our family business. Once we began speaking with Brian’s team at TransWood, it became quickly obvious that TransWood was a natural fit for Kane Transport,” said Kane-Haas. “We are extremely happy with this result for Kane Transport. TransWood shared our values and CLA’s investment banking team helped us navigate the process to bring forth what we all felt was the best buyer for the entire business.”
Legal counsel for Kane was provided by Brad Barz and Alyssa Brandvold of Gray Plant Mooty (now Lathrop GPM LLP) of St. Cloud, Minnesota. Quality of Earnings advisory was provided by Craig Arends and Eric Golueke of CLA’s Minneapolis office and Jon Otte of CLA’s Milwaukee office. Tax advisory was provided by Josh Enger, Michael Britten, and Andrew Bollman of CLA’s Minneapolis office.
Paul Novak, managing director in CLA’s investment banking practice, said that the acquisition of Kane was a great strategic move for TransWood for many reasons.
“It not only filled tangential white space on TransWood’s service map, but it was a great combination of culture, vision, and a shared approach to how they run their businesses,” Novak said. “This acquisition felt right the moment TransWood stepped forward. From the moment we signed the letter of intent, the focus shifted to closing the transaction and working on delivering great service to the combined customer base. I appreciated the TransWood team’s ability to always work toward solutions, and we anticipate great things from Kane and TransWood going forward.”
CLA investment banking professionals provide sophisticated corporate finance advisory and investment banking services to middle-market businesses and owners. The practice’s services include mergers and acquisitions, recapitalizations and other transaction-related advisory services.
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