LiMarCo, based in Houston TX, with a terminal in Corpus Christi TX, is a regional hauler of Liquefied Petroleum Gas/Natural Gas Liquids, with geographic focuses in Louisiana, Oklahoma, and the Upper Texas Gulf Coast and West Texas regions.
Terms of the transaction, which closed on December 6, were not disclosed. Grammer is a portfolio company of Stellex Capital Management, a middle market private equity firm with offices in New York and London, which acquired the company in October 2018 in partnership with Great Mill Rock LLC, the Whittington family, and management.
As a result of the transaction, Grammer will be acquiring 26 tractors, 41 trailers, and 15 independent contractors. The Houston facility was not included in the transaction. The Corpus Christi facility, which is currently LiMarCo’s base of operations, will provide Grammer with an office, shop, and yard space for parking equipment.
“Both companies have commercial and operational synergies that make this a great fit,” said Bart Middleton, chief executive officer of Grammer. “Grammer and LiMarCo share best-in-class safety and driver retention metrics, so we expect a smooth transition. This is a win-win for all involved.”
The LiMarCo fleet, operations, and roster of customers will move into Grammer’s NGL division. Angela Branchi, senior vice-president of Grammer’s NGL division said: “LiMarCo is a strong geographic and commodity fit for our division. It allows us to establish a brick-and-mortar presence in the busy Texas and Louisiana markets, and solidify our footprint in these critical markets.”
Kirby Black, co-owner of LiMarCo, said, “We are excited about the transaction with Grammer and believe the combined business will be uniquely positioned to serve its customers, employees, and independent contractors.”
The transaction is Grammer’s second acquisition in the last twelve months. In April 2019, Grammer acquired Sterling Transport Co Inc. Both transactions demonstrate Grammer’s commitment to a meaningful growth strategy, which includes extending its geographic reach and adding new products and services to its existing core business.
FINNEA Group, LLC; KSM Business Services, Inc.; Scopelitis, Garvin, Light, Hanson & Feary, PC; and Milbank, Tweed, Hadley & McCloy LLP advised Grammer on the transaction. Porter Hedges LLP advised LiMarCo.