CI Capital Partners has acquired a majority interest in Redwood Logistics, a provider of truckload and transportation management services.
Redwood Logistics will be combined with Simplified Logistics, an Ohio-based less-than-truckload logistics provider acquired by CI Capital and logistics executive Mark Yeager in February 2017. The merged company will operate as Redwood Logistics and Mr. Yeager, Simplified Logistics’ current CEO, will lead the company. Todd Berger, Founder and CEO of Redwood Logistics, will be the President and COO of the combined organization. Redwood Logistics is headquartered in Chicago (www.redwoodlogistics.com) and Simplified Logistics is headquartered near Cleveland in Westlake, OH (www.simplifiedlogistics.com).
The combination of Redwood Logistics’ strength in truckload brokerage, managed transportation services, and transportation technology services and Simplified Logistics’ strength in less-than-truckload freight management services creates a full-service provider of third-party logistics. “The complementary nature of Simplified’s and Redwood’s legacy businesses makes this a natural combination that creates a differentiated, multi-modal offering, improving the competitive positioning of both companies,” said Mr. Yeager. “This merger provides both businesses with a broader set of capabilities to offer our customers and an advantageous increase in scale. We are excited about the growth opportunities for the combined company.”
“When we initially acquired Simplified Logistics earlier this year, it was our goal to build a leading third-party logistics provider,” said Joost Thesseling, Managing Director at CI Capital. “We believe the merger with Redwood accomplishes that, and we will continue to look for add-on acquisitions that will complement and enhance the combined company’s service offering.”
CI Capital and Mr. Yeager began working together in August 2016 to pursue a platform company in the fragmented transportation and logistics sector. Prior to acquiring Simplified Logistics, Mr. Yeager was the President and Chief Operating Officer of Hub Group, a $3.5 billion publicly-traded transportation company offering intermodal, brokerage and logistics services. Mr. Yeager spent 23 years at the company, serving in various roles including general counsel, division president, and president of field operations. In October 2015, Mr. Yeager resigned from Hub Group’s board of directors, two months after stepping down from his post as President and Chief Operating Officer. Mr. Yeager is the son of Hub Group founder Phillip Yeager, and his brother, David Yeager, is the current Chairman and Chief Executive Officer of Hub Group.
CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 230 acquisitions representing over $8 billion in enterprise value. The firm is based in New York (www.cicapllc.com).
Chicago-based investment bank Republic Partners (www.republicpartners.com) was the financial advisor to Redwood Logistics.
© 2018 Private Equity Professional | January 3, 2018
