Dicom Transportation Group, a portfolio company of Wind Point Partners, has completed and add-on acquisition with the purchase of Modern Forwarding, a transportation services company based in Windsor, ON.
Wind Point acquired Dicom in February 2014 in partnership with Scott Dobak, who joined the company as its Chief Executive Officer. Mr. Dobak has 29 years of experience in the transportation industry and before joining Dicom he was the President of RoadRunner Transportation’s less-than-truckload (LTL) and transportation management segments (TMS). Prior to Roadrunner, he served for over 20 years with YRC Corp., a LTL carrier operating in the United States, Quebec and Ontario.
Dicom is a provider of business-to-business expedited transportation services. The company offers a range of small parcel courier, less-than-truckload and truckload transportation services as well as logistics and transportation management services. The company operates under the Dicom Express, GoJiT and JiT24.7 brands. Dicom is headquartered in Montreal (www.dicomexpress.com).
Modern Forwarding provides truckload and less-than-truckload transport with emphasis on US-Canada cross-border business. The company has expertise in customs clearance and handles US-based shipments for distribution throughout Ontario on behalf of Fortune 500 customers. The company’s fleet consists of approximately 100 drivers and owner-operators. The operations of Modern will be aligned with the current Freight division of Dicom. Modern Forwarding is headquartered in Windsor, ON.
“Modern provides Dicom with cross-border capabilities and a complementary line haul network run by a team of exceptional operators,” said Mr. Dobak. “Modern’s cross-border expertise will serve as an important link between Dicom’s extensive Canadian footprint and our expanding US network.”
“The acquisition of Modern is a key step in expanding Dicom’s scale and scope of services,” said Konrad Salaber, a principal at Wind Point. “With over C$250 million in annual sales, Dicom is firmly establishing itself as a leading transportation and logistics provider for North American shippers.”
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 $2.8 billion in capital under management. Wind Point Partners was founded in 1984 and is based in Chicago (www.wppartners.com).
Wind Point Partners’ add-on acquisition program for Dicom focuses on acquiring courier, LTL and transportation providers in Quebec, Ontario and the United States. In addition, Dicom is seeking 3PL providers who manage transportation, logistics and supply chain functions for businesses in Canada, the US and Mexico.
Investment bank AIM Group Canada (www.aimgroupcanada.com) served as exclusive financial advisor to Modern Forwarding. Kirkland & Ellis served as legal advisor and KPMG acted as a transaction advisor to Wind Point and Dicom.
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-23-15