Archives for January 2018

CI Capital Builds Logistics Platform

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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

Linden Adds Operating Partner

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Linden Capital Partners has added Joseph Bernardo to its team as a new Operating Partner.

Mr. Bernardo has significant M&A experience and has been involved with over 25 due diligences, acquisitions, and integrations since the start of his career. He most recently served as the President of the Next-Generation Sequencing and Oncology division at Thermo Fisher Scientific. Mr. Bernardo has been with Thermo Fisher since 2008 and in addition to his work with next-generation technologies he was the president of the company’s ImmunoDiagnostics, Anatomic Pathology, and Fisher Healthcare divisions. Prior to joining Thermo Fisher, he served as the Senior Vice President of the Central Lab Business Unit at Siemens Healthcare. Mr. Bernardo holds a BS in Chemistry from Lafayette College and a MA in Chemistry from the University of Virginia. He is currently a Senior Advisor to The Boston Consulting Group.

“After spending my career with Thermo Fisher, Siemens, and Abbott, I am excited to partner with a healthcare exclusive private equity firm that respects and values my management, operational, R&D, and M&A experience in the diagnostics industry,” said Mr. Bernardo.

Mr. Bernardo will serve as the Chairman of SeraCare and will also act as the lead Operating Partner for Linden’s investments in future diagnostics and life sciences companies. Linden acquired SeraCare, a maker of diagnostic controls, reagents and molecular biomarkers used in a variety of in vitro diagnostics, in April 2012.

“Joe has a plethora of relevant experience and brings an unparalleled knowledge base in the diagnostics arena,” said Brian Miller, a Managing Partner at Linden. “We are thrilled for him to join SeraCare as Chairman and continue to build upon Linden’s expertise in diagnostics.”

Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries with a specific interest in medical products, specialty distribution, pharmaceutical, and services segments of healthcare. Linden’s strategy is based upon three elements: healthcare and life science industry specialization; integrated financial and operating expertise; and strategic relationships with large corporations. The firm is based in Chicago (www.lindenllc.com).

© 2018 Private Equity Professional | January 3, 2018

Riverside Acquires HMI Cardinal

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The Riverside Company has acquired HMI Cardinal, a manufacturer and distributor of glass and metal products used for shower enclosures, storefronts and other applications.

HMI Cardinal has four operating divisions: (1) Cardinal Shower Enclosures (www.cardinalshower.com) is a manufacturer of shower enclosures, premium cast glass and tempered glass; (2) Cardinal Commercial Products (www.cardcompro.com) manufactures a line of storefront, curtain wall and entrance doors; (3) Hoskin & Muir (www.prohmi.com) is a distributor of decorative aluminum extrusions and structural profiles; and (4) Bella Glass Platters (www.bellaglassusa.com) is a maker of decorative glass platters, trays and bowls in a variety of shapes and colors.

HMI Cardinal sells its products to more than 5,000 customers in the US and Canada that are active in the residential, hospitality and light commercial markets. The company operates a 280,000 sq. ft. facility in Louisville and has seven distribution centers and nine delivery warehouses. HMI Cardinal was founded in 1948 and is headquartered in Louisville (www.hmicardinal.com).

“The shower enclosure market is growing, and stylish glass enclosures like Cardinal makes are increasingly popular,” said Riverside Managing Partner Suzy Kriscunas. “This is a nimble company that’s able to rapidly respond to changing customer tastes and demands.”

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 490 transactions and its portfolio includes more than 80 companies. The firm is headquartered in New York with 16 additional US and international offices (www.riversidecompany.com).

“Cardinal has a proven customer-centric approach,” said Riverside Partner Hunter Peterson. “It’s an outstanding foundation upon which to further grow the company in areas like e-commerce and hospitality, where we can offer experience and expertise to help ensure success and reach more customers and markets.”

Working with Ms. Kriscunas and Mr. Peterson on the transaction for Riverside were Vice President Jason Fulton, Senior Associate Laura Swearingen, Associate Harrison Petts and Operating Partner Tom Anderson. Managing Partner Jeremy Holland sourced the opportunity and Partner Anne Hayes worked on financing the transaction for the firm.

Antares Capital and Hancock Capital Management provided financing for this transaction.

Moss Adams Capital (www.mossadams.com) was the financial advisor to HMI Cardinal.

© 2018 Private Equity Professional | January 3, 2018