Wind Point Partners has acquired Dicom Transportation Group, a provider of business-to-business transportation services. Wind Point invested in Dicom in partnership with Scott Dobak who will join the company as its new CEO. The current management team of Dicom also invested in the transaction.
Mr. Dobak has 28 years of experience in the transportation industry and was most recently President of RoadRunner Transportation’s LTL and TMS segments. Prior to Roadrunner, he served for over 20 years with YRC Corp., a LTL carrier operating in the United States, Quebec and Ontario. Mr. Dobak replaces retiring Dicom co-founder and CEO Peter Overing, who led the business from its founding 40 years ago. All other members of management, including President Pierre Poliquin, will remain with the business and will continue to maintain a significant ownership stake in Dicom.
Dicom is a provider of business-to-business expedited transportation services. The company offers a range of small parcel courier, less-than-truckload (LTL) and truckload transportation services as well as logistics and transportation management services (TMS). The company operates under the Dicom Express, GoJiT and JiT24.7 brands. Dicom has annual revenues of approximately $175 million and is headquartered in Montreal (www.dicomexpress.com).
Wind Point will guide an acquisition program for Dicom by acquiring courier, LTL and TMS providers in Quebec, Ontario and the United States. In addition, the company is seeking third party logistics (3PL) providers who manage transportation, logistics and supply chain functions for businesses in Canada and the United States. Acquisition targets will also include carriers and 3PL providers who manage and facilitate cross border trade among Canada, the United States and Mexico.
“Scott’s impressive track record of driving growth, the incumbent team’s strong operational talents, and our board’s strategic vision make for a powerful combination to create value. We are excited to be partnering with this impressive team and look forward to growing Dicom both organically and through a robust acquisition program,” said Konrad Salaber, a principal at Wind Point.
Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.5 billion in capital under management and has completed more than 90 investments and 161 add-on acquisitions across its seven private equity funds. Wind Point Partners is based in Chicago (www.wppartners.com).
Financing for the transaction was co-led by Fifth Third Bank (www.53.com) and Mouvement des caisses Desjardins (www.desjardins.com) and also included Banque Laurentienne (www.banquelaurentienne.ca) and BBVA Compass (www.bbvacompass.com). Kirkland & Ellis served as legal advisor and KPMG acted as a transaction advisor to Wind Point.
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-13-14
