Acquisition adds over 140 company and owner operator drivers to XBL and diversifies the company into the Industrial Materials market, supporting XBL’s strategy to be the premier regional dry bulk materials transportation and logistics company.
WINSTON-SALEM, N.C., September 21, 2021--(BUSINESS WIRE)--Xcel Bulk Logistics LLC ("XBL") today announced its acquisition of the Spotted Lakes LLC dba 1845 Commercial Bulk Division in an all-cash asset purchase transaction.
The transaction forms the foundation for the launch of XBL Industrial Materials, a new corporate division to complement XBL’s existing XBL Construction Materials division which serves bulk cement customers throughout the Southeast. The new division will be based in the Dallas-Fort Worth Metroplex.
With operations in 15 states and corporate offices in North Carolina, Texas, and South Carolina, the newly formed XBL Industrial Materials is well positioned to serve a variety of customers’ pneumatic and flatbed bulk hauling requirements throughout the Southeast, Gulf Coast, and Midwest regions. The creation of a new division within XBL reflects a commitment to invest the financial and operational resources required to first deliver high levels of service and safety on existing commitments, but also to add additional capacity over time to the market as our customers grow.
"We are excited to take this strategic step for Xcel Bulk Logistics and to have the opportunity to bring ‘Xcellence in Safety, Services, and Solutions’ to a new market via XBL Industrial Materials. We look forward to earning the business and trust of our new customers from day one, and I am particularly eager to use our larger, diversified platform to grow the available services in the capacity-constrained bulk materials space," said Rick Hoyle, President of XBL. "We are pleased to carry on the strong legacy of 1845’s Commercial Bulk Division and especially proud to count their team of excellent drivers as part of our growing organization. Together we will work tirelessly to deliver on our commitments for customers as vital suppliers to their operations."
"We are proud of what we have achieved over the past four years building 1845’s Commercial Bulk division into a customer-focused service provider that customers can rely on and drivers are excited to work for. In thinking about the future and opportunities available in this market, I believe that the ownership and leadership of XBL are committed to continue our legacy of service to dry bulk customers while investing in the equipment and technology to scale with them over time," said Robbie Ballard, President of 1845 and now a Special Advisor to the Board of XBL Holdings LLC. "On a personal level, we are grateful for the drivers that have contributed so much to our success, and I am confident they will find a great home in XBL’s profitable, growing, and safe business."
"Industrial Materials customers have come to know our commitment to the professional and safe delivery of their cargo, and we are enthusiastic about the additional capacity and scale we will be able to deploy as part of the new XBL Industrial Materials," said Randy Plotner, former Vice President of Business Development for 1845 who joins XBL Industrial Materials as Vice President of Commercial Development. "The logistical challenges facing supply chains nationwide are well known, but while we intend to help address some of that shortage in this new entity, our customers can rest assured that our service level will not falter."
"While XBL has been focused on the dry cement market since its founding, our management team and operations staff have a twenty plus year career in Industrial Materials," said XBL Co-Founder and Senior Vice President of Commercial Development Galen Murphy. "We know these markets and their demands, and we look forward to helping our customers solve some of the toughest challenges in today’s tight transportation market. We look forward to offering our Captured Capacity model, developed for use in XBL Construction Materials, to the XBL Industrial Materials customers as a way to immediately lock in additional dedicated capacity with long-term agreements."
Diversified, Stable Platform
To be a long-term partner for our customers as well as a great place to work for our drivers and office staff, we must operate a business that can withstand the variations of the bulk materials market and the economy as a whole. As a diversified business, XBL will offer a) more stable work for drivers through economic cycles by deploying drivers across multiple divisions, b) better benefits for all employees, c) more resilient financial positioning that all stakeholders can rely on.
Economies of Scale
Investments in rolling stock, safety systems, and technology require large capital programs that can benefit from being shared across a broader organization. This ensures we are continually advancing safety and operations to improve customer outcomes while growing our service offerings. In addition, our larger footprint will benefit from procurement including fuel and insurance which improves our cost structure and benefits our customers.
Perkins Coie served as Buyer’s Counsel with Scopelitis, Garvin, Light, Hanson & Feary, P.C. serving as Regulatory Counsel.
Xcel Bulk Logistics LLC ("XBL") is a North Carolina-based dry bulk transportation and logistics business operated by an experienced management team with strong financial backing to be the customer and driver preferred construction and industrial materials trucking operation in the North America. With safe and reliable delivery of creative logistical solutions, XBL is building a new model in bulk materials on "Xcellence in Safety, Services, and Solutions." To find out more, visit www.XcelBulk.com.
XBL is owned by management and funds controlled by the Lilium Group, a Houston-based private equity manager focused on investments in the industrial and transportation space.
For more corporate inquiries or more information on this press release, please reach out Galen Murphy, Senior Vice President of Commercial Development, at GMurphy@XcelBulk.com.
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Senior Vice President of Commercial Development