M/G Transport Services (MG) based in New Orleans, was recently sold to Grand Rapids, Mich.-based private equity firm Auxo Investment Partners. MG is a dry barge transportation and logistics company with a fleet of 250 barges. Terms of the transaction were not disclosed.
Founded in 1967 and based in New Orleans, MG specializes in inland barge transportation, carrying more than five million tons of non-hazardous dry bulk cargo such as petroleum coke each year. The company meets Auxo’s investment criteria, which focuses on North American companies in the value-added distribution, manufacturing, industrial and business service sectors, Auxo officials said in a statement.
MG’s territory stretches from Houston to Mobile, Ala., and services the mouth of the Mississippi River upstream as far as Baton Rouge, La. The company has 16 employees, all of whom will remain with MG, including its veteran leadership team. MG owns dry cargo barges only — no towboats.
“I’m excited about the sale and about our future that is going to allow us to grow the business,” Jack Lordo, MG’s CEO told WorkBoat in a phone interview. “There’s a lot of overhang out there with young equipment looking for work, and there might be opportunity to add equipment for us. We’ll have to see.”
Lordo said the move is good for both MG and its employees. As for the down market in the inland industry, he said, “There’s no where to go but up from here. We’re optimistic.”
“We’re excited to work with MG and its accomplished team, led by industry veteran Jack Lordo, as we support the company’s existing customers and explore new growth opportunities,” Auxo’s Jeff Helminski and Jack Kolodny, said in a joint statement. “John Binion, another longstanding expert in the barge industry, will also play a key role as Auxo’s operating partner and a board member as MG embarks on its next 50 years of service.”
Auxo is a private investment firm that partners with owners and management teams of companies at transition points in their history. Auxo works to instill the infrastructure, processes and talent needed to help them grow to their full potential with a long-term investment approach.