Grammer Industries, a portfolio company of Stellex Capital Management, has acquired LiMarCo Logistics.
Grammer is a provider of transportation and logistics services for specialty and hazardous chemicals including anhydrous ammonia, liquefied petroleum gases, carbon dioxide, and nitric acid. The company’s services include transportation, transloading, terminaling, and handling of chemicals and hazardous materials.
LiMarCo Logistics is a regional hauler of liquefied petroleum gas and natural gas liquids in Louisiana, Oklahoma, the upper Texas Gulf Coast, and West Texas regions. The company is headquartered in Houston and operates a terminal facility in Corpus Christi.
Included in the acquired assets are LiMarCo’s Corpus Christi facility, 26 tractors and 41 trailers, 15 independent contractor relationships, and roster of customers. LiMarCo’s Houston facility was not included in the transaction.
Grammer was founded in 1968 by Charles “Shorty” Whittington in Grammer, Indiana as an over-the-road transporter of grain and dry fertilizer serving the agricultural industry in Southeast Indiana. Today, the company is headquartered in Columbus, Indiana and has 20 facilities located near major chemical production hubs across the United States. Grammer’s operating equipment includes a fleet of 350 tractors and 850 specialty trailers that are operated by over 500 drivers and owner-operators that support more than 2,000 delivery points and over 500 customers.
“Both companies have commercial and operational synergies that make this a great fit,” said Bart Middleton, CEO 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.”
Stellex acquired Grammer from Linx Partners in October 2018 in partnership with Mill Rock Capital, the founding Whittington family, and management. The buy of LiMarCo follows Grammer’s April 2019 buy of Sterling Transport, a Vass, North Carolina-based transporter of hazardous and specialty chemicals and materials including propane, natural gas liquids, cement, fly ash, asphalt emulsions, sand, and salt.
Stellex is actively seeking additional add-on acquisitions to extends Grammer’s geographic reach and adding new products and services to its existing core business.
Stellex invests from $25 million to $100 million in United States or Europe-based companies with enterprise values from $50 million to $500 million and revenues greater than $100 million. Sectors of interest include manufacturing and basic industry; industrial and business services; defense, aerospace and government services; automotive; consumer products; and distribution and transportation. Stellex has offices in New York and London.
Mill Rock Capital invests in North American-based middle-market businesses that are active in chemicals, materials and packaging; industrial distribution; business services; metals; transportation and logistics; and specialty manufacturing. The firm is based in New York City.
FINNEA Group was the financial advisor to Grammer on this transaction.
© 2019 Private Equity Professional | December 9, 2019
