McDougall Acquires DMC
DMC builds custom dredges, dredging equipment and components, and remanufactures used dredges for resale. The acquisition combines DMC’s experience and knowledge of the dredging industry with McDougall’s resources and reputation for quality and longevity. The combined companies will focus on maintaining a strong domestic presence, and will expand its brand in international markets for new dredges, refurbished dredges, parts and brokering.
Founded in 1985 by Don R. King, Dredge & Marine quickly became a major broker and manufacturer in the dredge industry. Well known in the market of sand and gravel producers, the company gained a foothold in the international dredging industry with the 2007 sale and fabrication of five new dredges to Jordan Modern Industries on behalf of the Water Development Board of the Government of Iraq. DMC and McDougall worked together in 2010 to secure another large international project, three new dredges for the Costa Rican Power Authority.
“We have been doing a lot of business with McDougall, who did most of our steel work,” said King. He had been interested in finding a stronger position for the company, which had capabilities but financial limitations. The choices were to merge with a larger company, form a joint venture, or sell the company.
After he let this be known, several companies showed an interest, and he received some very favorable offers. However, because of the history with McDougall and the proximity of the two companies, King decided that selling to McDougall would be the best for both companies.
“Dredge & Marine Corporation and John W. McDougall Company have teamed together to form a company rich in expertise, reputation, diversification, quality and resources,” says Alec McDougall, president of John W. McDougall Co., Inc. “I look forward to our future prospects and expansion.”
In an industry that is experiencing rapid growth throughout the world, Dredge & Marine maintains its status as a cutting edge company. One of its products, a state-of-the-art dredge that combines the motor and impeller shafts, solidified the company as an innovative force in the industry. This inventive nature couples well with John W. McDougall Company, which is known within the metals and construction industries for taking on new products and services in their infancy. From its foundation in 1938, McDougall was a leader in the commercial heating, ventilation and air conditioning (HVAC) field. The company began representing a new product called aluminum composite material in the late 1970s and fabricated one of the first ACM projects in North America. McDougall continues its up-to-date methods today with the use of high definition scanning for field dimensioning and engineering processes.
“I am personally gratified by this development,” says King. “It greatly enhances our ability to exploit our years of experience in our industry as a highly qualified and capable source for the dredge customer.”
Don King will remain executive vice president for the company. The new president is Tom Kroeger, a Purdue University Engineering graduate with an MBA in finance from Indiana University. He spent thirteen years as a project manager for Indianapolis-based Kirk & Blum Manufacturing Company, followed by nineteen years as vice president and division manager of the company’s Tennessee location.
“DMC’s affiliation with John W. McDougall Company will provide support and resources to allow them to reach their potential much more quickly than they could independently,” says Kroeger. “For me, DMC offers a chance to work with my old friend, Alec McDougall, in a completely different industry. The combination of company size, private ownership, people and industry combine to make it a once in a lifetime opportunity.”
The new Dredge & Marine Corporation will have its public industry debut at the 2011 CONEXPO-CON/AGG Show on March 22-26, 2011, in Las Vegas, Nevada. The “Dredge & Pit Trader,” an online publication of used dredges and dredging equipment, will still be maintained by Dredge & Marine. All of DMC’s 18 employees will remain at the company’s sales and operations location in Mt. Juliet and the manufacturing location in Millersville. Part of the fabrication services for components and new dredges will be performed at McDougall’s Nashville facility.