Quality Distribution, a publicly-traded North American logistics and transportation provider, has signed an agreement to be acquired by Apax Partners at an enterprise value of $800 million or $16 per share in cash. Under the terms of the agreement, Quality Distribution may solicit alternative proposals from third parties during a 40-day go-shop period. The agreement has been unanimously approved by Quality Distribution’s Board of Directors.
Quality Distribution (NASDAQ:QLTY) operates the largest chemical bulk logistics network in North America through its wholly-owned subsidiary, Quality Carriers, and is the largest North American provider of intermodal tank container and depot services through its wholly-owned subsidiary, Boasso America. Quality Distribution also provides logistics and transportation services to the unconventional oil and gas industry (oil and gas obtained through non-traditional sources such as oil sands, extra heavy oil, and shale oil) through its wholly-owned subsidiaries, QC Energy Resources and QC Environmental Services. The company maintains a network of independent affiliates and independent owner-operators that provide its nationwide bulk transportation services. Quality Distribution is headquartered in Tampa (www.qualitydistribution.com).
“Having followed Quality for several years, we have been impressed with the strategy and vision articulated by the company’s management team,” said Ashish Karandikar, a Partner on Apax’s Services team. “As the leading logistics platform in the bulk chemical transportation industry, Quality is well positioned to take advantage of both organic growth opportunities and strategic acquisitions while benefiting from the financial and operational flexibility of operating as a private company.
Apax invests in the technology & telecom; retail & consumer; healthcare; and financial & business services sectors. The firm has eight offices located in London, New York, São Paulo, Munich, Tel Aviv, Mumbai, Hong Kong and Shanghai (www.apax.com).
Apax has secured committed financing for the transaction, which will be provided by Deutsche Bank, Bank of America, Jefferies Finance, MIHI (part of Macquarie Capital) and SunTrust Bank.
RBC Capital Markets is serving as financial advisor to Quality Distribution.
2015 PEPD • Private Equity’s Leading News Magazine • 5-7-15