Haynes and Boone Advises American Electric Power in $550 Million Sale of Barge Operations Subsidiary

10/02/2015

A team of Haynes and Boone, LLP lawyers from three different offices advised American Electric Power Company, Inc. (AEP) in the agreement announced Thursday to sell its commercial barge subsidiary to American Commercial Lines for $550 million.

The subsidiary, AEP River Operations LLC, is a commercial inland barge company that delivers about 45 million tons of products annually, including 10 million tons of coal. The company, headquartered in Chesterfield, Mo., employs 1,090 employees and operates 56 towboat and 2,301 barges.

AEP Associate General Counsel Randy Ryan was the legal lead for the transaction. He tapped Houston Partner Walter Keneally who, together with Houston Partner Ricardo Garcia-Moreno, led the Haynes and Boone team.

The Haynes and Boone team included, among others, in Houston: Partners Joe Vilardo (Finance), Jesse Gelsomini (Benefits), John Eldridge (Environmental) and Odean Volker (Litigation); Counsel John Menke (Corporate); and Associates Sameer Saxena, Valisa Berber-Thayer and Winnie Nwapa (Corporate) and Brian Giovannini (Benefits); in Dallas:  Partners Keenan Kolendo (Real Estate) and Jennifer Wisinski (Hart-Scott-Rodino); Counsel Michael Threet (Tax); and Associates Alex Stevens (Labor) and Gavin George (Intellectual Property); and in Washington, D.C.: Partner Tom Lang (Antitrust). [Jim Kearns, a partner at Bryan Cave in St. Louis, provided maritime counsel.]

AEP said in March that it was exploring strategic alternatives for AEP River Operations, including a sale. Upon close of the sale, ACL will acquire AEP River Operations by purchasing all the stock of AEP Resources, the parent company of AEP River Operations. ACL will assume all assets and liabilities of AEP River Operations.

The sale of AEP River Operations is subject to regulatory approval including federal clearance pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The sale is expected to close in the fourth quarter of 2015.

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