Kirby Corp. Buys Hollywood Marine

Kirby Corp., the largest U.S. tank barge operator, has agreed to buy Hollywood Marine Inc., an inland tank barge company based in Houston, for about $325 million. Kirby, also based in Houston, said the purchase price consists of $90 million in stock, $135 million in cash and the assumption or refinancing of about $100 million of Hollywood debt. Kirby plans to merge the privately-held company into one of its subsidiaries and hopes the acquisition boosts its profits in the year 2000 and add to cash flow. As part of the deal, Kirby will name C. Berdon Lawrence, Hollywood Marine's president and principle shareholder, as chairman of Kirby and make its current chairman, George Peterkin, chairman emeritus. Kirby owns 511 barges and carries industrial chemicals, petroleum products and agricultural chemicals throughout the U.S.' inland waterway system. Hollywood Marine owns 256 barges operating along the Gulf Intracoastal Waterway and the lower Mississippi River and earned revenues of $168 million in 1998. The acquisition is expected to close in October.