By Rob Curran
Shares of Patriot Transportation were set to rise after rival fuel-tank trucking concern United Petroleum Transports agreed to buy it for about $65.9 million in cash, including debt.
United Petroleum agreed to buy Patriot Transportation, which operates regional petroleum-products trucking line Florida Rock & Tank Lines, for $16.26 a share, more than double Patriot’s Tuesday closing price of $7.68.
Florida Rock operates in Florida, Georgia, Alabama, and Tennessee, moving petroleum products and dry bulk from 17 terminals and six satellite locations.
United Petroleum and Patriot estimate the merged company will have revenue of more than $200 million per year. For the fiscal year ended in September 2022, Patriot logged revenue of $87.9 million.
United Petroleum is based in Oklahoma City, and currently delivers fuel around Alabama, Arizona, Georgia, Kansas, New Mexico, Oklahoma and Texas.
Write to Rob Curran at rob.curran@wsj.com
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