SMG Industries has acquired Barnhart Transportation’s suite of businesses for $53.3 million, the U.S. transportation services company announced this week.
The deal for the Pennsylvania-based portfolio of businesses included $26 million in cash, $24.3 million in stock options and a $3 million promissory note, according to the announcement. Included in the purchase were Barnhart Transportation; Barnhart Fleet Maintenance; Lake Shore Logistics; Lake Shore Global Solutions; Legend Equipment Leasing and Route 20 Tank Wash.
Barnhart has facilities in North East, Pennsylvania; North Charleston, South Carolina; Moncks Corner, South Carolina and Kingwood, Texas, per the company website.
SMGI, which in June announced its intent to acquire a Northeastern U.S.-based business, said the addition of the Barnhart companies is expected to double its annual revenues.
Matt Flemming, chairman of Houston-based SMGI, said in a statement the two companies together create a diversified mix of services, including truckload, dry bulk, liquids, intermodal, LTL, heavy haul, drayage, transload and brokerage.
“We anticipate that the combined entity will establish itself as a larger, scalable, and more diversified transportation business,” Flemming said. “With more than 500 non-overlapping customers, the cross-selling opportunities from a broader range of assets, capabilities, and services offers exciting opportunities for the growth of the combined company."
Brothers Tim and Bryan Barnhart launched Barnhart Transportation in 2003. The Barnharts were both appointed to SMGI’s board of directors and given executive roles at the company, with Bryan serving as CEO and Tim as CFO.
Steven Madden, an SMGI board member and chief transition officer, said the merger immediately creates value.
“We have worked hard since those difficult Covid days to transform SMGI along with the help of Jimmy Frye (president of 5J Trucking and board member) into a healthier, more profitable, turn-key, customer-focused, diversified, domestic infrastructure transportation company force,” Madden said in a statement.
Madden added he looks forward to the new opportunities the Barnharts’ expertise will create for the combined company.
“It provides the necessary platform to springboard us organically and inorganically giving us more capacity for expansion while gaining experienced, proven industry leaders and managers,” he said.
