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AEP River OPS
AEP river operations for sale: AEP will sell ACL barge carrier for $ 550 million. The buyer of the business is American Commercial Lines (ACL barges), controlled by PE.
AEP towboats energy company has agreed on the terms of the sale of the river freight business – AEP River Operations. As reported by TASS with reference to the news service Splash 24/7, the amount of the transaction would be 550 million US dollars.
AEP Barge Company is one of the largest barge shipping operators in the United States. The company traffic’s volume reached more than 40 million tons per year. The fleet of the company transports grain cargoes, coal, steel, ore, bulk cargoes, etc.
The buyer of the business is American Commercial Lines (ACL) controlled by Platinum Equity. Prior to the transaction, the ACL operated a fleet of 1,900 barges.
About the company
ACL considered among leaders in personal and property insurance. ACL is a main insurance firm that provides various services to clients in more than 80 countries. ACL gives services to legal entities, government agencies, and private clients, taking advantage of the largest global network of property and personal insurance. In addition, ACL companies are the leading life insurance and retirement insurance firms in the US. Common shares of ACL are named on the stock exchanges of New York and Tokyo.
The company has about 56,400 employees & 90 million clients in more than 80 countries. Operating income – $ 74 million. Assets – $ 498.3 billion, net profit is $ 349 million.
Times of crisis
The company’s large losses in the face of bankruptcy of Lehman Brothers led to negative expectations about the company’s future that were formed on the market by September 2008. Under these conditions, the US government decided to allocate a loan of $ 85 billion to the insurance giant.
In early 2009, a scandal erupted over the payment of extremely generous bonuses to many employees of the company, including those who brought the company to a critical state. With the ongoing economic crisis, this fact has caused outrage among the American public and politicians. According to initial reports, the company paid its employees $ 165 million in bonuses. In response to this, the US Congress passed a law under which each recipient of these awards should be taxed in the amount of 90 percent of the bonus received. On March 21, 2009, it turned out that the number of paid bonuses was even bigger than reported.