Missouri Barge Line and Cape Girardeau Fleeting & AEP River Operations
Missouri Barge Line and Cape Girardeau Fleeting, Inc have been acquired by AEP River Operations, a subsidiary of American Electric Power Co.
Decosimo acted as exclusive financial and sell-side advisor.
About Missouri Barge Line and Cape Girardeau Fleeting
Owned and operated by the Erlbacher family for over 80 years, these entities provide boat and barge inland marine transportation services. Specific business activities include leasing out a fleet of semi- and fully-integrated hopper barges and operating nine towboats through fully-found charters on the Mississippi River system. Fleeting services are also provided at the headquarters in Cape Girardeau, Missouri.
About AEP River Operations
AEP River Operations is a subsidiary of American Electric Power, which is the nation’s 9th largest public utility. Based in St. Louis, AEP River Operations utilizes a fleet of 2,850 hopper barges and 60 towboats to transport grain, coal, steel, ores, and other bulk products throughout the inland river system. In 2007, AEP transported over 65 million tons of bulk material.
Client Objectives
The companies were owned equally by Rob Erlbacher and Ann Erlbacher Dombrowski, the son and daughter of the Company’s founder. The owners desired to consider a transaction due to increased regulation and favorable market conditions. Both Ann and Rob have experienced several industry cycles and were interested in seeking liquidity for their interests while the industry was at the top of the cycle. At the same time, Rob had a desire to continue in the repair services business with his son and potentially expand into boat building.
Maximizing Value
Recognizing that there may not be a single buyer for all of the Erlbachers’ businesses, DCF professionals separated the lines of business and presented them on an as-acquired basis to a variety of potential strategic and financial buyers.
Disciplined Process
After Indications of Interest were submitted by prospective buyers, our professionals aided the Erlbachers’ decision with items including a matrix that made the comparative analysis of the multiple, complex differences between offers easy to evaluate. This analysis led the Erlbachers to accept an offer from AEP River Operations for most of the assets of the Companies. An additional asset was sold to McGinnis, Inc. We also assisted the Erlbachers in selecting a corporate securities attorney with experience in executing transactions.
Proven Results
After Indications of Interest were submitted by prospective buyers, our professionals aided the Erlbachers’ decision with items including a matrix that made the comparative analysis of the multiple, complex differences between offers easy to evaluate. This analysis led the Erlbachers to accept an offer from AEP River Operations for most of the assets of the Companies. An additional asset was sold to McGinnis, Inc. We also assisted the Erlbachers in selecting a corporate securities attorney with experience in executing transactions.