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Winter 2016

Kenan Advantage Group

avenues by

which we grow

our business.

The first is

through natural

or “organic”

growth.

This means

expanding

our business

with current

customers or

generating

business with

new customers.

This is really

the core of what we do day-to-day.

Second, we grow by acquiring and

partnering with other industry leading

carriers. I spend much of my time

evaluating acquisition opportunities that

complement our existing operations

or allow us to enter new markets that

make sense to our business and align

with our strategy. I basically serve as

the project manager for the process

of acquiring new business through

these avenues.

Patty: What do you look for when

evaluating acquisition opportunities?

Charlie:

We don’t purchase companies

just to become bigger. We purchase

companies that add value by

providing additional services to our

customers; allowing us to enter new

geographic areas to accommodate

a growing customer base; introducing

a new service line that fits our

That’s why it’s mission-critical that

these companies have outstanding

Drivers, strong management teams,

great reputations in safety and

service, well-maintained equipment,

and continued growth potential. If

we determine that a target company

is a good fit, we then advance to

negotiating the terms of a transaction.

Patty: How have acquisitions shaped

the company?

Charlie:

In the last five years, we’ve

completed more than 50 acquisitions

and private fleet conversions,

representing nearly $700 million in

annual revenue. As a result, we’ve

enhanced the financial strength

and stability of our company. Most

importantly, we’ve brought together

a collection of extremely talented

and passionate employees. Take, for

example, our expansion into Canada

through the purchase of RTL Westcan

in 2013. This partnership allowed us

to meet the growing needs of our

U.S.-based customers in Canada.

It also introduced KAG to a number

of new customers and additional

products and services, such as dry

bulk, ice-road transportation and oilfield

services. And we gained a talented

group of employees that shares new

ideas and best practices with the rest

of the organization.

Ultimately, acquisitions have resulted in

better service for our customers, career

opportunities for our employees, and

positive returns for our investors.

Charlie DeLacey,

Vice President

of Corporate

Development

model; or improving service to

customers by adding trucks and

exceptional Drivers.

Patty: What’s the process once we identify

a company as a possible acquisition?

Charlie:

Once we identify a company

that meets our initial criteria, we do

significant diligence to determine if it’s

a good fit operationally, financially and

culturally. As the leader in the industry,

we’re extremely selective; we hold

acquisition candidates to the same high

bar we set for ourselves. A number

of KAG employees are involved in the

vetting process, from our operational

teams to our administrative support

group and key leaders. When we

acquire a company, we partner with

that organization to provide exceptional

service to our collective customers.

Continued from page 1

“ACQUISITIONS HAVE

RESULTED IN BETTER

SERVICE FOR

OUR CUSTOMERS

AND CAREER

OPPORTUNITIES FOR

OUR EMPLOYEES...”

Enhancing

Our Strength