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American Industrial Partners to buy bulk freight shipping services provider Rand Logistics

LBR Staff Writer Published 22 November 2017

American Industrial Partners (AIP) has agreed to acquire bulk freight shipping services provider Rand Logistics.

As per terms of the deal, the AIP will convert all of Rand’s second lien debt into 100% of the new common equity of the reorganized company.

The deal will allow Rand to clear $90m outstanding debt and reduce annual interest expense.

Rand Logistics offers bulk freight shipping services across the Great Lakes region, which covers the areas of Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin.

Through its subsidiaries, the company manages a fleet of three conventional bulk carriers and twelve self-unloading bulk carriers, including three tug/barge units.

Rand is said to be the only carrier that provides domestic port-to-port services in both Canada and the US on the Great Lakes.

Based in Jersey City of New Jersey, Rand Logistics was established in 2006 through the acquisition of Lower Lakes Towing.

Rand Logistics president and CEO Edward Levy said: “We are pleased that we have reached an agreement, which will allow Rand to significantly reduce its debt burden and partner with a leading private equity firm.

“The transaction firmly addresses Rand’s recent balance sheet challenges and positions the Company for continued customer service and growth.”

AIP partner Jason Perri said: “Rand’s track record of reliability, safety and service in moving critical raw materials among world class customers between ports on the Great Lakes speaks for itself.”

Image: American Industrial Partners to acquire Rand Logistics. Photo: courtesy of Stuart Miles / Stuart Miles.