07.01.2013

TNT to merge with Southway

Texas based TNT Crane & Rigging has acquired Southway Crane & Rigging of Macon, Georgia. The two companies will have a merged fleet of around 380 units with a maximum capacity of 1,200 tonnes.

Southway currently operates a fleet of cranes with capacities of up to 700 tonnes from eight locations in Georgia, South Carolina, Tennessee and Florida.

Jerry Reynolds, Southway’s founder and controlling shareholder will remain with the merged company as executive vice president for the Southeast region. Other managers and employees will also remain with the business.

Speaking of the acquisition Reynolds said: “Our employees are excited about this deal. This deal expands our geographic footprint and we’ve already identified real opportunities to share assets and expertise across our respective regional markets and customers. Southway and TNT share a common culture around safety, excellent service and smart business. We are going to have a lot of fun taking this business to the next level.”

Founded in 1985, TNT was acquired by Odyssey Investment Partners just over a year ago. Since then it has added Oklahoma based Turner Bros which it acquired in July. It operates from 11 locations in Texas, Louisiana and Oklahoma.

TNT chief executive Michael Appling Jr. said: “We are extremely excited to bring together two of the best crane companies in the business. This combination puts us in a stronger and more competitive position from numerous perspectives. Both TNT and Southway work hard to be industry leaders in safety and operational excellence and this combination can only strengthen our reputation and market position. We welcome the Southway employees into the TNT family and we enthusiastically look forward to building and growing a great company together.”

Kregg Lunsford, who recently joined TNT as chief development officer added: “Southway has an impressive management team and its approach to growing the business is perfectly aligned with our strategy. We are thrilled to join forces with Jerry Reynolds, Greg Fussell, James Simons, Guy Lopez and the entire Southway team. In this business we own and operate a large fleet of expensive cranes but our most valuable asset is our people.”

Vertikal Comment

TNT has been growing at a rapid and consistent pace since Michael Appling and Mezzanine Management bought into the business in 2007. In 2008 it acquired Kuhn and then Americrane. RTL and Louisiana Cranes followed in 2011.

The sale to Odyssey came later in 2011 and then around six months later Turner Bros. The result is a company that is a company that will be among the 10 largest crane rental companies in the country, operating throughout a region that has been very strong over the past year or two.

The merger with Southway gives the business some decent market and geographic diversification and takes it to a new level in terms of size. We do not know anything about terms of the transaction, but assuming they were fair, this looks like a good deal that will place the business in a solid position for the next step up.