October 19, 2012

Trive Capital Acquires Southern Towing Company

Dallas, Texas, and Memphis, Tennessee

Trive Capital (“Trive”), the Dallas-based private equity firm, and McCombs Partners (“McCombs”), the investment division for the San Antonio, Texas based McCombs family have acquired Southern Towing Company (“STC”), one of the largest operators of tugs and barges along the inland waterways of the United States.

“Trive could not be more pleased to invest in STC only a few months after launching the firm. The management team and employees have built a very strong business with a true focus on the customer and serving the needs of the market. STC is the rare company that has achieved growth in a thoughtful and strategic way, and we look forward to growing the business and capitalizing on the opportunities in front of the Company” commented Conner Searcy, Managing Partner of Trive.

Bill Stegbauer, the President of STC, remarked, “We believe this partnership with Trive positions STC to continue its success and growth while maintaining its commitment to customer service and quality. The future has never been brighter for our company, so the timing of this partnership positions us very well.”

Rad Weaver, CEO of McCombs Partners, “It is always exciting for us to partner with sharp investors like Trive. STC possesses many of the qualities we look for in potential investments: terrific long-term customers, strong asset base, competitive technology advantages, and high barriers to entry in the marketplace. We look forward to working with Trive and STC management to find ways to better serve our customers while identifying new growth opportunities.”

The $90 million senior secured debt facility for the transaction was led by PNC Bank, N.A., a member of The PNC Financial Services Group, Inc. (NYSE:PNC). STC will continue to serve its niche of fertilizer and specialty transport and will look to expand both organically and through acquisition working with its board composed of Trive Capital, McCombs Partners and Acacia Partners.

 

About Southern Towing Company

Southern Towing Company is one of the nation’s largest transporters of fertilizer and other products along the nation’s inland waterways. Southern Towing serves a diverse base of customers who are responsible for providing key products up and down the Mississippi River system to end markets such as farming, coal, and aggregates. Southern Towing was founded in 1962 and is headquartered in Memphis, Tennessee.


About Trive

Trive Capital is a Dallas, Texas based private equity firm with more than $7 billion of regulatory assets under management. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas.

The Trive team is comprised of seasoned investment professionals who have been involved in over 100 middle-market transactions representing in excess of $6 billion in revenue across Trive’s targeted industry sectors and situations.

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