Graycliff Sells Last-Mile Platform

Graycliff Partners has sold NAL Group, a provider of logistic services, to CRST International.

Buffalo, New York-based NAL Group is a provider of logistics services including final mile delivery, installation and assembly to OEMs, retail and e-commerce companies. Customers of NAL include Best Buy, Costco, IKEA, Sam’s Club and Wayfair.

Graycliff acquired NAL (North American Logistics) in October 2016 and in February 2018 completed the add-on acquisition of Buffalo-based, a provider of complex in-home installation and assembly services for appliances, furniture, personal computers, TV and home theaters, fitness equipment, and patio furniture. The buy of created a combined company capable of providing a complete array of last-mile delivery and logistics services, including warehousing services, big and bulky delivery, and complex in-home installation.

NAL is led by President and CEO Matt Riordan. “Graycliff was an extraordinary partner in growing the company, said Mr. Riordan. “Graycliff’s support and guidance enabled us to successfully navigate the challenges of a rapidly growing business. We look forward to bringing our unique capabilities to the CRST organization.”

“Working with the team at NAL Group to build the company to its current scale has been highly rewarding,” said Brandon Martindale, a Graycliff managing director. “We appreciate the hard work and dedication of the entire management team and wish them continued success as part of CRST International.”

Cedar Rapids-based CRST International is one of the largest transportation companies in the United States with a fleet of more than 4,500 trucks and annual revenues exceeding $1.5 billion. The company was founded in 1955 by Herald and Miriam Smith as Cedar Rapids Steel Transport (CRST).

CRST is owned by Hillcrest Holdings, a Smith family holding company that invests in privately held middle-market businesses in the United States that have enterprise values between $25 million and $150 million. Cedar Rapids, Iowa-based Hillcrest was formed in 2012 and is led by Chairman and President John Smith, the son of the founders.

New York City-based Graycliff invests from $10 million to $50 million of control equity in companies with revenues of $10 million to $200 million and EBITDA of $4 million to $20 million. Sectors of interest include niche manufacturing, business services and value-added distribution. The firm was formed in December 2011 by the former investment team of HSBC Capital. In December 2019, Graycliff held a final closing of its latest buyout fund, Graycliff Private Equity Partners IV LP, at its hard cap with $350 million of limited partner commitments.

© 2020 Private Equity Professional | March 6, 2020

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