Kane Transport, Inc., a leading Midwest transporter specializing in petroleum and related products, has officially joined forces with TransWood Carriers, Inc., a national bulk carrier based in Omaha, Nebraska. This acquisition, finalized on December 31, 2019, marks a significant expansion for TransWood and strengthens its presence in the liquid bulk transportation sector. CLA’s investment banking team played a crucial role as the exclusive financial advisor to Kane Transport throughout this transaction, which was initially announced on December 18, 2019. The financial details of the deal remain undisclosed.
For those in the transportation and logistics industry, the name Kane Transport resonates with reliability and regional expertise. Based in Minnesota, Kane Transport has built a strong reputation as a premier provider of hazardous liquid transportation services. Operating a substantial fleet of tanker trucks, the company efficiently manages the transportation of various grades of gasoline, biodiesel, liquid asphalt, ethanol, and propane. With 12 strategic hub locations spanning across Iowa, Illinois, Minnesota, North Dakota, and Wisconsin, Kane Transport has established a robust network in the Midwest.
The origins of Kane Transport trace back to 1949 when Joseph and Louis Kane founded the company. Starting as a modest single-truck operation, their initial focus was transporting gas and fuel oil from Minneapolis to western Minnesota and eastern North Dakota. Over three generations of family leadership, Kane Transport has evolved into a prominent liquid bulk transportation entity in the Midwest. The company’s growth reflects a commitment to service and an understanding of the evolving needs of the petroleum, construction, and agricultural sectors, now boasting a fleet of over 150 trucks, primarily dedicated to hauling petroleum products alongside construction and agricultural commodities.
TransWood Carriers, the acquirer, brings to the table its own impressive history and national reach. Established in 1928 and headquartered in Omaha, TransWood operates as a major liquid and dry bulk carrier with a widespread network of facilities. Their footprint extends from Pennsylvania in the east to Nevada in the west, and as far south as San Antonio, Texas, showcasing their extensive national capabilities. According to the Federal Motor Carrier Safety Administration (FMSCA), TransWood commands a significant operation with over 800 power units. Brian Wood, the President of TransWood and former chairman and current board member of the National Tank Truck Carriers (NTTC), underscores the strategic importance of this acquisition.
“Kane Transport is a strategic and valuable addition to the TransWood family,” stated Wood. He further emphasized the alignment of values, noting, “Kane’s unwavering commitment to quality and timely service, without ever compromising on safety or environmental responsibility, were critical factors in this acquisition.” This statement highlights the cultural and operational synergies that made the acquisition a compelling move for both entities.
Looking ahead, the integration of Kane Transport into TransWood Carriers is designed to be seamless and beneficial for all stakeholders. Day-to-day operations at Kane Transport will continue under the existing management structure. Key members of the Kane family will remain involved, ensuring continuity and preserving the legacy of the company. Peter Kane will assume the role of General Manager, and Patrick Kane will continue as Operations Manager. Angela Kane-Haas, while stepping back from her daily role as CFO, will remain engaged in board capacities, providing strategic guidance. TransWood’s strategy includes leveraging its technology and operational best practices to further enhance Kane Transport’s service capabilities and customer responsiveness.
Angela Kane-Haas expressed the family’s perspective on the acquisition process: “We had considerable interest from various parties, but it was paramount for our family to find a partner that would not only be the best fit for our dedicated employees but also honor the legacy of our family business. Our discussions with Brian’s team at TransWood quickly revealed that TransWood was the ideal partner for Kane Transport.” She concluded, “We are exceptionally pleased with this outcome for Kane Transport. TransWood shares our core values, and CLA’s investment banking team expertly guided us through the process, ultimately leading us to what we believe is the best possible future for our entire business.”
The transaction involved a team of advisors who facilitated the acquisition process. Legal counsel for Kane Transport was provided by Brad Barz and Alyssa Brandvold of Gray Plant Mooty (now Lathrop GPM LLP). CLA also provided advisory services, with Quality of Earnings advisory from Craig Arends, Eric Golueke, and Jon Otte, and Tax advisory from Josh Enger, Michael Britten, and Andrew Bollman.
Paul Novak, Managing Director at CLA Investment Banking, highlighted the strategic rationale behind the acquisition. “The acquisition of Kane Transport represents a highly strategic move for TransWood for several reasons,” Novak commented. “It not only expands TransWood’s service area into strategically important territories but also represents a strong alignment in corporate culture, vision, and operational philosophies. This acquisition felt right from the outset. From the moment the letter of intent was signed, the focus was on efficiently closing the transaction and ensuring seamless service delivery to the combined customer base. We commend the TransWood team’s solution-oriented approach and are optimistic about the future success of Kane and TransWood together.”
CLA’s investment banking practice offers a range of corporate finance advisory and investment banking services to middle-market businesses. Their services encompass mergers and acquisitions, recapitalizations, and other transaction-related advisory services, demonstrating their expertise in facilitating complex business transactions.
Securities products, merger and acquisition services, and wealth advisory services are offered by CliftonLarsonAllen Wealth Advisors LLC.
About CLA
CLA is a professional services firm dedicated to creating opportunities for its clients, employees, and communities. With a focus on industry-specific expertise, CLA provides wealth advisory, digital, audit, tax, consulting, and outsourcing services. Comprising nearly 9,000 professionals across more than 130 locations globally, CLA is committed to understanding and assisting its clients. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global.
