Fleet management services

Harvest Acquires Material Handling Services

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Harvest Partners has acquired Material Handling Services, a provider of fleet management and asset management services, from CI Capital Partners. The company’s management team, including founder and CEO Brent Parent, will continue to lead MHS under Harvest ownership.

CI Capital acquired its equity stake in Material Handling Services (MHS), then doing business as Total Fleet Solutions, in July 2012. In December 2012 the company completed the add-on acquisition of The Miner Corporation. Today, MHS operates through two divisions: (1) Total Fleet Solutions is a brand independent provider of fleet management services to Fortune 1000 companies and other large manufacturing and distribution companies throughout North America (www.tfsglobal.com); and (2) Miner (based in San Antonio) provides outsourced facility services including equipment installation, repairs and asset management services (www.minercorp.com). MHS is headquartered southwest of Toledo in Perrysburg, OH.

“Throughout CI Capital’s investment in MHS, the management team did an excellent job of executing an organic growth and M&A strategy that enhanced the company’s value proposition and expanded its service offering,” said Timothy Hall, a Managing Director at CI Capital. “We are proud of the partnership we have had with founder and CEO Brent Parent and the rest of the management team, and we wish them continued success.”

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 220 acquisitions representing over $8 billion in enterprise value. The firm is based in New York (www.cicapllc.com).

“We have spent substantial time with MHS over the past year and believe the value proposition, growth strategy and vision fit squarely within our services investment strategy,” said Michael DeFlorio, a Senior Managing Director at Harvest Partners.

Harvest Partners invests in companies with $20 million to $100 million of EBITDA and total enterprise values of $100 million to $1 billion.  The firm invests in four industry verticals: business services and consumer; healthcare services; industrial services; and manufacturing & distribution. Harvest was founded in 1981 and is based in New York (www.harvestpartners.com).

Robert W. Baird was the financial advisor to Material Handling Services. Financing for the transaction was provided by Antares Capital, PSP Investments USA and Crescent Capital Group.

© 2017 Private Equity Professional | March 15, 2017

Vista Equity Partners Acquires Omnitracs

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Qualcomm has signed an agreement to sell Omnitracs to Vista Equity Partners for $800 million in cash. The acquisition will include all of Omnitracs operations in the United States, Canada and Latin America, including Sylectus and FleetRisk Advisors, which were acquired by Omnitracs in 2011.

Omnitracs provides fleet management services including software applications, platforms and information services. Services are used for safety and compliance, driver retention, GPS fleet tracking, and fleet maintenance. Omnitracs is based in San Diego (www.omnitracs.com).

“In the late 1980’s, Qualcomm pioneered the use of commercial vehicle telematics with the introduction of the first mobile information system for transportation and logistics. As one of Qualcomm’s earliest businesses, Omnitracs has maintained a leadership position within the industry for 25 years. Today, the opportunity for fleet management and telematics is evolving rapidly, and we believe Omnitracs is well positioned to continue its leadership position as a stand-alone entity,” said Derek Aberle, executive vice president and group president, Qualcomm. “Vista’s long-term investment focus and experience helping software, data and technology-enabled businesses drive growth and leadership positions is a great fit for the Omnitracs business and management team. We look forward to witnessing their continued success together.”

Vista Equity Partners has more than $7 billion in committed capital and makes equity investments in enterprise software businesses and technology-enabled services companies. The firm was founded in 2000 and has over 50 investment professionals operating out of Austin, Chicago, and San Francisco (www.vistaequitypartners.com).

“We are long-term investors in enterprise software, data and technology-enabled businesses that are committed to being leaders in their fields,” said Robert Smith, chief executive officer and founder of Vista Equity Partners. “We are impressed with the compelling value proposition Omnitracs’ products and services offer their customers. We look forward to working with them and helping them to reach their full potential.”

Qualcomm (NASDAQ: QCOM) is an American global semiconductor company that designs, manufactures and markets digital wireless telecommunications products and services. The company is headquartered in San Diego with 157 worldwide locations (www.qualcomm.com).

Barclays Capital is serving as financial advisor to Qualcomm.

The acquisition is expected to be completed during the first quarter of Qualcomm’s fiscal 2014.

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-23-13