Wind Point has acquired A&R Logistics, a provider of dry bulk logistics services to manufacturers and distributors of chemicals and plastics, from Mason Wells which acquired the company in January 2013.
A&R’s services include transportation, warehousing, packaging, distribution, and third-party logistics management. The company operates a national network of nearly 50 facilities, a fleet of 800 specialized tractors and 1,200 pneumatic trailers (both company-owned equipment and owner-operators), and a technology platform customized for dry bulk transportation.
A&R, founded in 1969, is led by CEO Mark Holden and is headquartered in Louisville, KY (www.ardoingitright.com). Mr. Holden and the entire management team of A&R will remain with the business and retain a meaningful ownership stake in the company alongside Wind Point.
“We are excited to have Wind Point as our partner for a number of reasons, key among them a deep knowledge of the logistics space and a reputation for strong collaboration with the management teams they sponsor,” said Mr. Holden. “We are very excited to work with Wind Point to grow A&R Logistics, and we see significant opportunities ahead for our company, customers, employees and partners as we grow the business organically and through acquisition.”
Wind Point is an active investor in transportation, logistics and route-based businesses. Earlier investments in these sectors include Dicom Transportation (acquired in March 2014), St. George Logistics (acquired in July 2016), Valicor Environmental Services (acquired in June 2017), RailWorks (acquired in May 2007) and AIR-serv (acquired in March 2003 and sold in July 2006 to Macquarie Capital).
According to Wind Point, A&R’s organic growth strategy for the domestic dry bulk plastics market will focus on expanding its transportation infrastructure and national network of warehouse facilities. A&R plans to launch multiple new facilities totaling at least two million square feet in the Ports of Charleston and Savannah to support the packaging and export of numerous resins including polyethylene, polyvinyl chloride, and polypropylene.
For add-on acquisitions, A&R will focus on buying companies similar to itself that provide dry bulk transportation and warehousing services to producers and distributors of chemicals and plastics. A&R will also look to expand through acquisition into complementary services, including liquid chemical supply chain services.
“We are thrilled to partner with Mark Holden and the A&R team as they lead the company into a new phase of growth,” said Konrad Salaber, a managing director at Wind Point. “We look forward to supporting a robust value creation plan that includes expanding A&R’s domestic infrastructure, aggressively growing export supply chain solutions in the Ports of Charleston and Savannah, and completing acquisitions to enhance the company’s scale and scope of service.”
Debt financing for the transaction is being provided by Antares Capital, Bain Capital, First Eagle Investment Management, and Varagon Capital as syndication agent.
Kirkland & Ellis is providing legal services to Wind Point and KPMG is providing transaction advisory services.
Wind Point invests from $50 million to $100 million in companies with EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. In June 2017, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII LP, with $985 million of capital commitments. The fund exceeded its initial hard cap of $750 million and is the largest fund closing in Wind Point’s history. The firm was founded in 1984 and is based in Chicago (www.wppartners.com).
© 2019 Private Equity Professional | May 8, 2019