transportation

Littlejohn Sells Direct ChassisLink to EQT

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EQT Partners, through its EQT Infrastructure II Fund, has agreed to acquire Direct ChassisLink, a provider of marine chassis to the container shipping industry, from Littlejohn & Co.

Direct ChassisLink (DCLI) has a fleet of approximately 120,000 marine chassis that are used to carry shipping containers to and from ships in port to intermodal hubs for long haul transport by rail or truck. DCLI’s customers consist of container shipping companies, railroads, motor carriers, and other logistics companies who use DCLI’s chassis under long-term contracts. In total, DCLI serves approximately 3,300 customers across approximately 375 active rental locations. DCLI also manages approximately 92,000 domestic containers owned by third parties through its REZ-1 asset management platform. The company is headquartered in Charlotte (www.dcli.com).

DCLI was originally formed in 1988 as Maersk Container Service Company, and operated as a subsidiary of Maersk until March 2012 when it was acquired by Littlejohn & Co. DCLI’s management team, led by CEO Bill Shea, will remain with the company under EQT ownership.

“Over the past four years, we have more than doubled the size of the business since we acquired it from Maersk, and we see significant growth potential in adjacent markets and through the REZ-1 platform,” said Mr. Shea.

EQT Partners invests in medium sized companies operating in a range of industries in Northern Europe, Eastern Europe, China and the US. The acquisition of DCLI represents EQT’s seventh infrastructure investment in North America and the second investment in the US port sector. The firm is based in Stockholm with other offices in Copenhagen, Helsinki, Oslo, Frankfurt, Munich, New York, Shanghai, Hong Kong and Warsaw (www.eqt.se).

EQT Infrastructure II is a €1.9 billion ($2.1 billion) fund that invests in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe, and North America. Investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and services businesses with infrastructure characteristics.

“EQT has experience investing in the port sector in both Europe and North America. We have continued to look for other angles through which to invest in the companies and assets that benefit from the underlying macroeconomic trends that are increasing demand for transportation infrastructure,” said Alex Darden, a partner at EQT.

Littlejohn makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth.  The firm invests from $50 million to $150 million of equity in middle market companies that have annual revenues of $100 million to $800 million.  Littlejohn invests across a range of industries and acquires manufacturers, distributors, and service providers.  The firm is currently investing from Littlejohn Fund V, L.P., which has $2 billion in capital commitments.  Littlejohn is based in Greenwich, CT (www.littlejohnllc.com).

EQT Infrastructure was advised by Scott-Macon (www.scott-macon.com); Weil, Gotshal & Manges (www.weil.com); KPMG (www.kpmg.com); Bain & Company (www.bain.com); West Monroe Partners (www.westmonroepartners.com); and Marsh (www.mmc.com).

Littlejohn and DCLI were advised by Harris Williams & Co. (www.harriswilliams.com); Stifel, Nicolaus & Company (www.stifel.com); and Morrison Cohen (www.morrisoncohen.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-18-16

Wind Point Acquires Modern Forwarding

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Dicom Transportation Group, a portfolio company of Wind Point Partners, has completed and add-on acquisition with the purchase of Modern Forwarding, a transportation services company based in Windsor, ON.

Wind Point acquired Dicom in February 2014 in partnership with Scott Dobak, who joined the company as its Chief Executive Officer.  Mr. Dobak has 29 years of experience in the transportation industry and before joining Dicom he was the President of RoadRunner Transportation’s less-than-truckload (LTL) and transportation management segments (TMS).  Prior to Roadrunner, he served for over 20 years with YRC Corp., a LTL carrier operating in the United States, Quebec and Ontario.

Dicom is a provider of business-to-business expedited transportation services. The company offers a range of small parcel courier, less-than-truckload and truckload transportation services as well as logistics and transportation management services.  The company operates under the Dicom Express, GoJiT and JiT24.7 brands. Dicom is headquartered in Montreal (www.dicomexpress.com).

Modern Forwarding provides truckload and less-than-truckload transport with emphasis on US-Canada cross-border business.  The company has expertise in customs clearance and handles US-based shipments for distribution throughout Ontario on behalf of Fortune 500 customers.  The company’s fleet consists of approximately 100 drivers and owner-operators.  The operations of Modern will be aligned with the current Freight division of Dicom.  Modern Forwarding is headquartered in Windsor, ON.

“Modern provides Dicom with cross-border capabilities and a complementary line haul network run by a team of exceptional operators,” said Mr. Dobak.  “Modern’s cross-border expertise will serve as an important link between Dicom’s extensive Canadian footprint and our expanding US network.”

“The acquisition of Modern is a key step in expanding Dicom’s scale and scope of services,” said Konrad Salaber, a principal at Wind Point.  “With over C$250 million in annual sales, Dicom is firmly establishing itself as a leading transportation and logistics provider for North American shippers.”

Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.8 billion in capital under management.  Wind Point Partners was founded in 1984 and is based in Chicago (www.wppartners.com).

Wind Point Partners’ add-on acquisition program for Dicom focuses on acquiring courier, LTL and transportation providers in Quebec, Ontario and the United States. In addition, Dicom is seeking 3PL providers who manage transportation, logistics and supply chain functions for businesses in Canada, the US and Mexico.

Investment bank AIM Group Canada (www.aimgroupcanada.com) served as exclusive financial advisor to Modern Forwarding. Kirkland & Ellis served as legal advisor and KPMG acted as a transaction advisor to Wind Point and Dicom.

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-23-15

Gen Cap Exits Van Pool Transportation

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Gen Cap America has sold its portfolio company Van Pool Transportation to Fort Point Capital.  Gen Cap America acquired Van Pool in October 2008 and realized more than eight times its original investment on the sale.

Van Pool Transportation provides transportation to and from school for special needs children in more than 100 school districts across New England. The company was founded in 1980 and is headquartered in Wilbraham, MA (www.vanpooltransportation.com).

“The relationship between Gen Cap and Van Pool was very successful for both companies,” said Gen Cap America Senior Vice President Matt Lane. “Van Pool’s differentiated service model and its strong management team, led by CEO Kevin Hinkamper, were key factors in Gen Cap’s investment in Van Pool nearly six years ago, and we believe those same resources will usher in its next successful chapter of growth.”

Gen Cap America invests in companies with revenue between $5 million and $100 million that are active in the manufacturing, distribution or service sectors.  The firm is actively investing Southwest Fund VI, a $165 million fund which began making investments in May 2010. Gen Cap was founded in 1985 and is based in Nashville (www.gencapamerica.com).

The buyer, Fort Point Capital, invests from $5 million to $25 million in service-oriented, lower middle market companies across a range of sectors, including business services, healthcare, consumer, and software and information. Fort Point Capital is currently investing from FPC Small Cap Fund I. The firm is based in Boston (www.fortpointcapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-21-14

Wind Point Acquires Dicom

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Wind Point Partners has acquired Dicom Transportation Group, a provider of business-to-business transportation services. Wind Point invested in Dicom in partnership with Scott Dobak who will join the company as its new CEO. The current management team of Dicom also invested in the transaction.

Mr. Dobak has 28 years of experience in the transportation industry and was most recently President of RoadRunner Transportation’s LTL and TMS segments. Prior to Roadrunner, he served for over 20 years with YRC Corp., a LTL carrier operating in the United States, Quebec and Ontario. Mr. Dobak replaces retiring Dicom co-founder and CEO Peter Overing, who led the business from its founding 40 years ago. All other members of management, including President Pierre Poliquin, will remain with the business and will continue to maintain a significant ownership stake in Dicom.

Dicom is a provider of business-to-business expedited transportation services. The company offers a range of small parcel courier, less-than-truckload (LTL) and truckload transportation services as well as logistics and transportation management services (TMS). The company operates under the Dicom Express, GoJiT and JiT24.7 brands. Dicom has annual revenues of approximately $175 million and is headquartered in Montreal (www.dicomexpress.com).

Wind Point will guide an acquisition program for Dicom by acquiring courier, LTL and TMS providers in Quebec, Ontario and the United States. In addition, the company is seeking third party logistics (3PL) providers who manage transportation, logistics and supply chain functions for businesses in Canada and the United States. Acquisition targets will also include carriers and 3PL providers who manage and facilitate cross border trade among Canada, the United States and Mexico.

“Scott’s impressive track record of driving growth, the incumbent team’s strong operational talents, and our board’s strategic vision make for a powerful combination to create value. We are excited to be partnering with this impressive team and look forward to growing Dicom both organically and through a robust acquisition program,” said Konrad Salaber, a principal at Wind Point.

Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.5 billion in capital under management and has completed more than 90 investments and 161 add-on acquisitions across its seven private equity funds. Wind Point Partners is based in Chicago (www.wppartners.com).

Financing for the transaction was co-led by Fifth Third Bank (www.53.com) and Mouvement des caisses Desjardins (www.desjardins.com) and also included Banque Laurentienne (www.banquelaurentienne.ca) and BBVA Compass (www.bbvacompass.com). Kirkland & Ellis served as legal advisor and KPMG acted as a transaction advisor to Wind Point.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-13-14

The Carlyle Group Invests in Addison Lee

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The Carlyle Group has made a significant investment in Addison Lee, a provider of transportation services. Capital for this investment will come from Carlyle Europe Partners III L.P., a €5.4 billion fund that makes mid and large cap investments.

Addison Lee is a provider of transportation and private hire services in London and the South East of England. Using its fleet of 4,500 vehicles, the company carries over 10 million passengers and makes over 1 million courier deliveries per year. Addison Lee was founded in 1975 and is based in London (www.addisonlee.com).

The focus for Carlyle’s investment in Addison Lee will be to drive business expansion both in the UK and internationally by providing transport services to a wider range of blue chip corporates and individual customers. This will be achieved by enhancing customers’ access to the company’s fleet and new innovations in the company’s technology platforms.

“Addison Lee is a strong business and brand with great potential. As experienced investors in the automotive and transportation sector through companies such as Applus+, Hertz and RAC, we hope Carlyle’s experience and expertise will allow us to support the plans to continue growing the business both in the UK and internationally and to create value,” said Andrew Burgess, Managing Director of Carlyle Europe Partners.

Carlyle was advised on the transaction by Deloitte, OC&C and Latham & Watkins. Addison Lee was advised by Catalyst Corporate Finance and Joelson Wilson.

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The Carlyle Group employs 1,400 people in 33 offices across six continents and is based in Washington, DC (www.carlyle.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-22-13

Georgia Oak Partners Invests in TeamOne Logistics

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Georgia Oak Partners has made an investment in TeamOne Logistics, a provider of staffing and related services to transportation companies. This investment in TeamOne marks the inaugural transaction for Georgia Oak Partners.

TeamOne Logistics is a provider of workforce staffing, dedicated fleet, and warehousing operations to companies with transportation or warehousing related functions.  TeamOne specializes in employee services, including recruitment and screening, training and development, benefits, risk management and compliance. With approximately $50 million in revenue, TeamOne has more than 750 employees across 26 states. The company was founded in 2003 and is based in Alpharetta, GA (www.teamonelogistics.com).

Georgia Oak Partners funded the transaction with equity from its syndicate of investors, including Southeast-based executives and institutional investors.  Financing for the transaction was provided by the Commercial Banking Division of The Brand Bank.

Georgia Oak is partnering with the existing management of TeamOne Logistics, including founder Jerry Gray.  A 30-year veteran in the transportation and logistics industry, Mr. Gray continues as President of TeamOne. “The Georgia Oak partnership is an exciting next step for us and will bolster our top-line growth strategy,” said Mr. Gray. “It is important to us that Georgia Oak brings a local, relationship-based approach. We are excited about this next phase of growth and the benefits this partnership will provide to our customers and employees.”

“We are thrilled to partner with the experienced leaders at TeamOne,” said Michael Lonergan, Managing Director of Georgia Oak. “It has become increasingly challenging for companies with private truck fleets to navigate today’s operating environment. The shortage of truck drivers, increased regulations and rising insurance costs are trends that are expected to continue. We believe TeamOne is well-positioned to assist companies in managing the various complexities of transportation workforce management.”

Georgia Oak seeks to invest $2 million to $10 million in Southeast US based companies with revenues of $10 million to $100 million.  Sectors of interest include business services, including transportation and logistics; consumer products and services, including restaurants; niche and specialty manufacturing; and packaging and materials, including value-added building products.  The firm is based in Atlanta (www.GeorgiaOakPartners.com).

“Our investment in TeamOne launches Georgia Oak Partners on our mission to help grow ‘backbone economy’ undercapitalized companies in our region,” said A.D. Frazier, President of Georgia Oak. “We believe that the Southeast region will return to GDP growth rates greater than the US as a whole due to long-term fundamentals, which remain favorable. Our approach is to invest as a partner, alongside owners who are deeply passionate about the growth prospects of their businesses.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13