Marquette Transportation Up For Sale

Reuters says the CEO of Dell has expressed interest and it’s valued at over $1 billion…

http://gcaptain.com/marquette-transportation-for-sale/

I thought Kirby was buying every tug that moved?

[QUOTE=rob;153178]Reuters says the CEO of Dell has expressed interest and it’s valued at over $1 billion…[/QUOTE]

do I detect a wee bit of wiseass in this post?

,well done!

Ya lost me there Cap, yo no comprendo

[QUOTE=PaddyWest2012;153190]Ya lost me there Cap, yo no comprendo[/QUOTE]

read what Rob wrote…

[QUOTE=PaddyWest2012;153190]Ya lost me there Cap, yo no comprendo[/QUOTE]

GOOD FUCKING LORD! Rob was being SERIOUS! I am utterly flabbergasted that such a company would be valued at $1B! How can this be?

[B]Marquette Transportation Up For Sale For More Than $1 Billion[/B]

Jan 29 (Reuters) – Marquette Transportation Company LLC, a U.S. towboat operator, is exploring a sale that could value it at more than $1 billion and has attracted the interest of Dell Inc Chief Executive Officer Michael Dell, according to people familiar with the matter.

Marquette’s owners, that include its founders and buyout firm KRG Capital Partners LLC, are working with investment bank Harris Williams & Co on an auction for the company that is already underway, the people said this week.

Private equity firms and family offices are vying for Marquette, including MSD Capital LP, the private investment firm of Michael Dell and his family, the people added.

Marquette has annual earnings before interest, tax, depreciation and amortization of close to $150 million, the people said.

The sources asked not to be identified because the sale process is confidential. Marquette, KRG, Harris Williams and MSD representatives did not immediately respond to requests for comment.

Paducah, Kentucky-based Marquette provides towboat services in the Mississippi River and other major waterways in the United States. It operates more than 120 boats and 850 barges, serving agricultural and energy companies.

The company was created in its current form in 2007 with the merger of three family-owned businesses and backing from KRG.

I am stuttering and spittle is getting all over my laptop

120 boats, 850 barges, and revenue of $150 million a year makes $1 Billion sound reasonable.

It’s encouraging that a tech titian like Micheal Dell wants to invest $1 Billion in a towboat company.

[QUOTE=tugsailor;153247]120 boats, 850 barges, and revenue of $150 million a year makes $1 Billion sound reasonable.

It’s encouraging that a tech titian like Micheal Dell wants to invest $1 Billion in a towboat company.[/QUOTE]

Actually, their EBITDA is $150 million. If we assume they’re operating at a ~10-15% gross margin, that puts their total revenues in the neighborhood of $1-1.5 billion. I’m honestly not sure what the margins for businesses in the maritime industry are like, though. Maybe their valuation has more to do with the large amount of PP&E?