Post Capital Partners has acquired Smith Transportation Services in partnership with the company’s management team.
Smith Transportation is a national full-service third-party logistics and asset-light transportation services provider. The company’s services include load-to-ride (LTR), truckload, less-than-truckload (LTL) and rail/intermodal brokerage services. Smith’s most prominent service, load-to-ride, is provided on an outbound basis from Miami, Tampa, Southern California and the New York Metro area. The company’s customer base includes shippers across a wide range of industries throughout North America. Smith Transportation was founded in 2001 and is headquartered in Sunrise, FL (www.smith-cargo.com).
The management team buyers include Steve Smith, Bill Nichols, Jeff Maser and Christine Postlmayr. Sam Woodward, a Post Capital Executive Partner and transportation industry executive also participated with the buying group. Mr. Woodward has worked with private equity firms and hedge funds in past transportation investments including Horizon Lines, one of the nation’s largest domestic ocean shipping and inland transportation companies, where he was President and CEO from 2012 to 2014; and Gemini Air Cargo, a major international cargo carrier operating on five continents, where he was Chairman, President and CEO from 2003 to 2008.
“This transaction is a great example of Post Capital’s Executive-First strategy in action,” said Isaac Chalal, a Vice President of Post Capital. “In this situation, we partnered with an extremely talented team of individuals – many of which have worked together for several years – and utilized our relationship with a long-time Executive Partner of our firm to evaluate and execute the investment. Sam Woodward will also be a phenomenal resource to the company as it executes its plan going forward.”
“Smith Transportation has a longstanding reputation of providing critical transportation solutions for its customers on a nationwide basis,” said Michael Pfeffer, Managing Director of Post Capital. “We are thrilled to partner with Steve Smith and the rest of the management team to support them as they implement the company’s growth initiatives, which includes adding additional talent, expanding the company’s load-to-ride service to additional geographies and potential tuck-in acquisitions.”
Post Capital invests minority growth and control equity in companies with $10 million to $150 million of revenue and EBITDA of $2 million to $20 million. Industries of interest include services, manufacturing and distribution businesses. The firm was founded by Mitch Davidson and Michael Pfeffer and is based in New York (www.postcp.com).
“Our partnership with Post Capital is extremely exciting for Smith Transportation and our employees,” said Steve Smith, President and COO of Smith Transportation. “Post’s investment will enable us to supercharge our growth, to invest in new technology and to expand our geographic footprint. We look forward to Post’s support in helping us to pursue our strategic plan and to continue finding ways to better serve our customers’ and carrier-partners’ needs.”
Patriot Capital provided senior debt financing for the transaction. BDO served as Post Capital’s financial advisor and Cross Keys Capital served as financial advisor to the company and its selling shareholders.
© 2018 Private Equity Professional | September 28, 2018
