H.I.G. Capital has completed the acquisition of Cardinal Logistics, a provider of transportation and logistics services.
Cardinal is a provider of dedicated contract carriage (DCC) services which provide customers with a dedicated fleet of both trucks and drivers. Cardinal’s route structures include scheduled pick-ups and deliveries across distribution centers, suppliers, and stores for approximately 65 customers across more than 170 locations. The company has a fleet of more than 10,000 tractors/trailers and 3,200 drivers.
DCC services is one of the fastest growing segments of the trucking and distribution industry. Many companies use DCC to reduce costs, increase truck capacity, transfer liability, and greatly reduce fleet management administration.
Cardinal was founded in 1997 by Chairman Vin McLoughlin and CEO Tom Hostetler and is headquartered in Concord, NC (www.cardlog.com). “Partnering with H.I.G. enables Cardinal to continue delivering excellent service while also pursuing growth opportunities with both existing and new customers,” said Mr. McLoughlin.
“We believe Cardinal represents a compelling opportunity to invest in transportation and logistics, especially as supply chains become more complex and locking in reliable, dedicated capacity takes on mission-critical importance,” said Richard Stokes, a managing director at H.I.G. “As customers continue to outsource their transportation and logistics needs, we expect Cardinal to become an increasingly important strategic partner. We look forward to working with Vin, Tom and the rest of the executive team to propel the business to new heights.”
H.I.G. specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing and service businesses. H.I.G. has more than $30 billion of capital under management. The firm is based in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, and São Paulo (www.higcapital.com).
“We are excited about Cardinal’s growth prospects and believe our clients and employees will benefit immensely from H.I.G.’s support as we embark on our next growth phase,” said Mr. Hostetler.
© 2019 Private Equity Professional | June 10, 2019