Fastfrate Holdings, a provider of transportation and logistics services in Canada and a portfolio company of Fenway Partners, has sold a majority interest in the company to Tepper Holdings, an investment company controlled by Fastfrate’s Chairman and Chief Executive Officer Ron Tepper. As part of the transaction, Fenway Partners will remain a substantial minority investor in Fastfrate and invest additional capital in the business, alongside a significant reinvestment by Mr. Tepper. Fenway first invested in Fastfrate in November 2007.
“We are pleased to continue our partnership with Ron Tepper and his team, and have the utmost confidence in Fastfrate’s future. We look forward to continuing to support the company as it strives to reach its full potential by expanding and enhancing its services, competitive positioning and geographic footprint,” said Peter Lamm, Co-Founder and Managing Partner of Fenway Partners.
Fastfrate is one of the largest privately owned providers of transportation and logistics services in Canada employing more than 2,000 people and transporting more than 2 billion pounds of freight annually. Services include LTL and truckload from any point to any point within Canada and the northeast and Midwest United States, national drayage services, cartage, warehousing, transloading on both the west and east coasts, special operational direct ship program for select retailers, and third party logistics. Fastfrate has 17 operating terminals across Canada. The company was founded in 1966 and is based in Woodbridge, Ontario (www.fastfrate.com).
“Our partnership with Fenway has played an important role in helping Fastfrate to expand and sharpen our business over the last five years and I am pleased that the company will continue to benefit from their financial and operational advice and experience going forward. I would like to thank both the Fenway team and our Board of Directors for their steadfast support and confidence in our management team,” said Mr. Tepper.
Fenway Partners is a middle market private equity firm based in New York with approximately $1.6 billion under management. Fenway makes control investments in businesses with $100 million to $600 million in enterprise value and $15 million to $75 million in EBITDA. Equity investments generally range from $50 million to $75 million. The firm is based In New York (www.fenwaypartners.com).
“I am thrilled about today’s announcement and am more energized than ever about Fastfrate’s future,” said Mr. Tepper. “Over the course of our 47 year history, we have built one of the most complete service offerings for transportation in Canada. With that as our foundation, Fastfrate is beginning its next phase of growth and development and is now better positioned to take advantage of the many attractive opportunities ahead. Our future is bright and I look forward to continuing to grow and diversify our revenue base, expand our business, deepen our relationships with key customers and provide consistently high-quality transportation services throughout Canada.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-18-13
