Not only do the trucking subsidiaries of The Kenan Advantage Group (KAG) burn diesel fuel, but they also haul it. The company operates through four segments: Fuels Delivery (refined petroleum products and renewable fuels, including gasoline, diesel, aviation, and ethanol); Merchant Gas (industrial gasses); Specialty Products (chemicals and food grade products); and KAG Logistics (fully automated end-to-end logistics). KAG operates a fleet of some 3,800 tractors and 5,300 tank trailers from a network of more than 100 terminals in approximately 40 states, and makes deliveries to all of the continental US, Canada and Mexico. Investment firm Littlejohn & Co. owns the company.
KAG's four segments include Fuels Delivery (its largest segment, which transports refined petroleum products and renewable fuels, including gasoline, diesel, aviation, and ethanol) and Merchant Gas (transports industrial gasses through subsidiaries Cryogenic Transportation and Jack B. Kelley). Other segments include Specialty Products (chemicals and food grade products such as sweeteners and oils) and KAG Logistics (fully automated end-to-end logistics).
Sales and Marketing
KAG's customer base includes oil companies, truck stop chains, convenience stores, hypermarkets, aviation fuel marketers, and other national and regional petroleum marketers. It also serves chemical manufacturers and bulk liquid food products makers.
In recent years KAG has made moves to expand and diversify its operations. In 2012 it obtained Highland Environmental, which enabled it to expand its services to the energy market. Highland, headquartered in Pennsylvania, caters to oil and gas exploration and production companies operating primarily in the Utica and Marcellus Shale plays. Highland transports fresh, reused, and produced water along with drilling mud and other fluids utilized in the industry. The acquisition strengthened KAG's transportation services to the energy sector which is a natural fit to the overall supply chain KAG and its subsidiaries have been servicing for over 70 years.
KAG formed its newest business unit, the Merchant Gas Group, with the purchase of Cryogenic Transportation, Inc. in late 2010 followed by the acquisition of the Jack B. Kelley, Inc. business in late 2011. The new group ships argon, carbon dioxide, helium, hydrogen, oxygen, and liquid natural gas (LNG) throughout North America utilizing 25 terminals and approximately 470 cryogenic and specialty trailers with a team of over 500 skilled drivers.
The company was founded as Advantage Tank Lines in 1991 by Dennis Nash and Carl Young. – less