Seacoast Capital has sold UX Specialized Logistics, a provider of last mile logistics services for retail chains and e-commerce companies, to XPO Logistics (NYSE: XPO). The purchase price was $59 million, excluding any working capital adjustments, with no assumption of debt or cash. UX had revenue of $113 million and an adjusted EBITDA of $8.2 million in 2014 resulting in a valuation multiple of 7.2x.
UX Specialized Logistics is a provider of last-mile logistics with services ranging from white glove home delivery, assembly and installation, and warehousing and fulfillment, to on-demand same-day expedited delivery, for major retail chains and e-commerce companies. The company completes over 7,000 daily deliveries and has approximately 700 employees, with an additional contracted capacity of over 1,600 independent carriers and installers nationwide. UX Specialized Logistics was founded in 1978 and is headquartered in New York (www.uxlogistics.com).
During Seacoast’s five year term of investment, UX increased revenue at a compound annual growth rate of 19%. “In partnership with management, we have implemented many growth and operational improvement initiatives, including expanding the company’s service offering, geographic footprint, and customer base; as well as driving greater operational efficiency by investing in quality systems, processes, and people,” said Eben Moulton, Partner at Seacoast.
Seacoast Capital provides between $3 million and $12 million of debt and equity capital for acquisitions, growth, shareholder buyouts, management buyouts, and leveraged recapitalizations. While industry agnostic, Seacoast has a particular interest in the specialty manufacturing, value-added distribution, and business services sectors. Seacoast targets investments in companies with $10 million to $150 million in revenue and $2 million or more of EBITDA. Seacoast is currently investing its third fund, Seacoast Capital Partners III, with $150 million of capital commitments. The firm was founded in 1994 and has offices in Boston and San Francisco (www.seacoastcapital.com).
Harris Williams & Co. served as the financial advisor to Seacoast and UX Specialized Logistics.
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15
