Savage To Acquire Settoon’s Liquid Bulk Division Assets

February 13, 2017

 

Savage Inland Marine in Orange, Texas, a subsidiary of Midvale, Utah-based Savage Companies, announced last week an agreement to acquire assets related to Settoon Towing’s liquid bulk division, totaling some 35 towboats and 63 liquid tank barges, with a total capacity of close to 2 million barrels.

Settoon Towing, with headquarters in Pierre Part, La., will continue operating its Gathering & Storage and Logistics & Vessel Management divisions, which are not included in the sale.

According to the terms of the agreement, which should be finalized within a month or two, Savage Inland Marine will hire about 250 current Settoon Towing employees.

“These strategic assets will strengthen our ability to serve customers in the inland waterway,” said Kirk Aubry, Savage president and CEO. “We look forward to welcoming the Settoon employees involved in this business segment as Savage team members. During a brief transitional period, we will be working closely with Settoon under an operating agreement that will ensure a seamless transition for the customers we serve.”

Savage Inland Marine’s acquisition of Settoon Towing’s liquid bulk division, when complete, will constitute over half of Settoon’s fleet of towboats. Settoon’s gathering and storage divisions include more than 25 boats and 60 barges, according to a statement from Settoon. Settoon’s Logistics & Vessel Management division specializes in managing and operating third-party vessels, including crewing, maintenance, training and compliance.

“This sale positions us to better serve our customers in the Gathering & Storage and Logistics & Vessel Management divisions, where we have been providing first-class marine transportation since 1968,” Settoon Towing Chairman and CEO Russ A. Settoon said in the statement. “We look forward to growth in the future and will continue to invest in our people and our equipment to deliver the safest and most reliable marine transportation to all our customers.”

Currently, Savage Inland Marine specializes in providing barge fleeting and dock services and operating inland towboats on the Neches River. The company also offers rail and refinery services, terminal operations, transloading and truck transportation in the Gulf Coast region.

“Marine transportation continues to be among the lowest-cost and safest methods for moving freight,” Aubry said in a statement. “With the country’s petrochemical renaissance and expansion of refineries and other facilities along the [Gulf] Intracoastal [Waterway] and inland waterways, we see a bright future for barge transportation in the Gulf Coast and beyond.”

Founded in 1946, Savage Companies is a privately-held supply chain and industrial services company with a workforce of more than 3,200 people and more than 230 locations in North America and internationally.