Chemical Hauler Outlook C 5ef259894cb30

KAG reportedly up for sale

Oct. 23, 2020
Canadian pension fund eyeing sale of liquid bulk transporter in deal that could net $2.5 billion, according to Bloomberg

Kenan Advantage Group (KAG) may be up for sale.

Omers Private Equity (OPE), the private equity arm of the Omers pension fund in Canada, reportedly is considering selling the bulk transportation provider in a move that could net $2.5 billion or more, including debt, according to a recent Bloomberg report.

The report said Omers is working with an advisor to solicit interest from potential suitors. A representative from KAG said the company would not comment on the report when contacted by Bulk Transporter.

Founded in 1962, Omers is one of Canada’s largest defined benefit pension plans, with C$109 billion ($82.9 billion) in net assets of Dec. 31, 2019. The firm invests in and administers pensions for more than 500,000 active, deferred and retired employees of 1,000 municipalities, school boards, libraries, police and fire departments, and other local agencies spread across Ontario, Canada, according to Omers’ website.

Omers bought KAG from Goldman Sachs Capital Partners and Centerbridge Partners for an undisclosed amount in 2015.

Dennis Nash, then CEO of KAG, said at the time: “We are excited about our new partnership with OPE. Their culture, large capital base and international presence make them an ideal partner for us as we continue to be the transportation provider of choice. We will continue to revolutionize transportation and logistics for the liquid bulk industry and provide uncompromising, reliable service to clients seeking total service excellence for their logistical needs.”

KAG has been active on the growth and acquisition front in recent months.

It completed the purchase of Quebec, Canada-based Beaulac Transport (Les Distributions Carl Beaulac) through Canadian subsidiary RTL-Westcan in September, and reunited RTL-Westcan with Paul’s Hauling in October. The company also recently strengthened its Food Products division with a new food-grade wash rack in Decatur AL.

Founded in 1991 and headquartered in North Canton OH, KAG bills itself as North America’s largest provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets in the U.S., Canada and Mexico.