The Carlyle Group has acquired United Road Services, a vehicle transportation company, from Charlesbank Capital Partners which acquired the company in December 2012 from The Gores Group.
United Road is a provider of vehicle transport and logistics to more than 10,000 customers including OEM suppliers, rental agencies, finance and leasing companies, auctions, web-based logistics firms and individuals – transporting more than 3 million new, remarketed and specialty vehicles each year. The company, led by CEO Kathleen McCann, has 1,700 employees and more than 6,000 owned and contracted vehicle carriers. Under Carlyle ownership Ms. McCann will continue as CEO, Mark Anderson will continue as President and COO, and the balance of the current management team will remain in place. United Road is headquartered near Detroit in Romulus, MI (www.unitedroad.com).
Under Charlesbank ownership United Road diversified and expanded its customer base, built its owned vehicle transport fleet and entered into partnerships with owner operators and third party carriers, and grew its sales and customer service capacity. The employee count of the company increased from approximately 1,200 to 1,700 from 2012 to 2017.
In December 2013 United Road acquired the Auto Transport Division of Waggoners Trucking for $225 million. The 
acquisition nearly doubled United Road’s capacity and made the company the second-largest car-hauler in North America. “We are so grateful to Charlesbank and our board of directors for their support over the past five years,” said Ms. McCann. “Our strategic growth platform was really turbocharged in late 2012 when we were acquired by Charlesbank. They provided the capital, support and encouragement to expand our reach and capabilities – both organically and through the Waggoners’ transaction, which gave us a deeper presence in the southeast and southwest US. Today our team is on track to move north of 3.5 million vehicles in 2017 up from 1.5 million in 2012.”
Charlesbank Capital Partners invests in management-led buyouts and growth capital financings in companies with enterprise values of $150 million to $1.5 billion. The firm has offices in Boston and New York (www.charlesbank.com).
“It was a privilege for Charlesbank to partner with United Road during this phase of its growth,” said Michael Choe, Managing Director and CEO of Charlesbank Capital Partners. “We have enjoyed working with Kathleen, Mark and the rest of the team to execute on key elements of our investment thesis, including implementing its national remarketed strategy, accelerating asset-light revenue growth and maximizing its technology platform to improve route efficiency. The success of these initiatives has resulted in a very successful investment for our investors, and we believe the company has both the people and the structure to support ongoing growth under new ownership.”
The Carlyle Group (NASDAQ: CG) invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The firm employs approximately 1,550 people in 31 offices across six continents and is based in Washington, DC (www.carlyle.com).
“United Road’s growth in recent years is a testament to its superb leadership and quality customer service,” said Carlyle Managing Director Adam Glucksman. “To our partnership with Kathleen and her team, we’ll bring Carlyle’s deep transportation experience and network, which we believe will contribute meaningfully to United Road’s continued growth trajectory.”
Mary Petrovich, a Carlyle Operating Executive and Chairwoman of AxleTech International, a designer and manufacturer of drivetrain systems for on- and off-highway vehicles and a portfolio company of Carlyle, will serve on the board of United Road. “Kathleen is an accomplished leader with vision and drive. I look forward to supporting her efforts to take United Road to the next level of success,” said Ms. Petrovich.
Equity for this transaction came from Carlyle Equity Opportunity Fund II, a $2.4 billion fund that closed in February 2016 to invest in middle-market companies in the US.
United Road and Charlesbank were represented by RBC Capital Markets and William Blair in this transaction. Carlyle was advised by Kirkland & Ellis as legal counsel and Ernst & Young as financial advisor.
© 2017 Private Equity Professional | September 6, 2017
