Groendyke Transport Inc. has agreed to purchase the tank truck assets of McKenzie Tank Lines, a bulk carrier based in Tallahassee, Fla., for an undisclosed amount.
The deal is described as the largest ever for Enid, Okla.-based Groendyke, increasing the company’s terminal count from 30 to 40, adding about 200 drivers and boosting annual revenue by more than $40 million.
“It has been our longtime goal to expand our operations in the Southeast,” Groendyke President Greg Hodgen said in a statement Oct. 25. “Our two companies have so much in common, from history to culture and values to emphasis on safety. This deal makes perfect sense.”
Both firms are family-owned and have been in the tank truck business for many decades. Harold Groendyke founded Groendyke Transport in 1932, and the company still is headed by his son, John Groendyke. MTL was founded by W. Guy McKenzie Sr. in 1944 with two tank trailers and over the years grew to a fleet of 300 tractors and 900 tank trailers with 14 terminals in six states.
“Our two companies have long histories and rich traditions in the tank truck industry,” Jim Shaeffer, CEO of MTL, said in a statement. “Moreover, our companies share a tremendous commitment to our people that includes their safety and well-being. We believe this change will ensure stability for our employees and create tremendous opportunities for them.”
Shaeffer will stay on for a period of time after the deal is completed to help with the transition from MTL to Groendyke, a company spokesman told Transport Topics.
At present, MTL’s fleet consists of about 230 tractors and 650 trailers, the spokesman said.
Both companies haul refined petroleum products, chemicals and bulk hazardous materials, with Groendyke operating throughout the continental United States and Alaska.
Once a transition is complete, Groendyke will have terminals in 15 states, from as far west as Arizona and Wyoming, as far north as Chicago and to the East Coast with the addition of MTL terminals in Alabama, Florida, South Carolina and North Carolina.
“We have a vision to be the trucking company our customers and employees want to grow with,” Groendyke’s Hodgen said. “Expanding to the Southeast helps us fulfill that vision and expand our ability to serve existing and new customers.”
The purchase of MTL follows the recent acquisitions of two much smaller companies by Groendyke — Patriot Energy Partners in Tulsa, Okla., in February and Manweiler Transports in Pueblo, Colo., in January 2017. Patriot and Manweiler primarily hauled fuel.
Groendyke officials said they expect to close the acquisition of MTL on Jan. 1.
The addition of MTL’s business is expected to increase Groendyke’s revenue to approximately $280 million in 2019, company officials said.
Groendyke ranks No. 7 on the Transport Topics list of top for-hire carriers in the tank/bulk sector with revenue of $224 million in 2017.