transportation

Pamlico Capital Exits TMW Systems

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Pamlico Capital has announced the sale of TMW Systems, a provider of enterprise software to transportation and logistics companies, to Trimble Navigation for $335 million in cash.

TMW Systems has more than 1,800 customers in the trucking, 3PL, private fleet, construction, municipal government, retail repair and waste management industries. TMW Systems was founded in 1984 and has offices in Cleveland, OH (headquarters); Durham, NC; Indianapolis, IN; Dallas, TX; Vancouver, BC; Nashville, TN; and Oklahoma City, OK (www.tmwsystems.com).

Pamlico acquired TMW from the company’s founder in 2005. During its ownership period, Pamlico recruited and hired the current CEO, Dave Wangler, and assisted the company with five acquisitions. In addition, TMW expanded its market by launching new products and services and targeted new segments of the transportation industry. During Pamlico’s ownership, TMW has grown annual revenue from approximately $25 million to approximately $96 million today.

“Pamlico helped TMW scale and grow into a leading provider of enterprise software to the transportation industry,” said Dave Wangler, TMW’s Chief Executive Officer. “We have truly enjoyed our partnership with Pamlico and want to thank them for their support and confidence in us.”

Pamlico Capital, formerly known as Wachovia Capital Partners, was founded in 1988 and has invested in excess of $3.5 billion in over 200 middle market companies since its inception. Pamlico Capital seeks growth equity and buyout investments of up to $75 million alongside management teams in its target industries, which include business & technology services, communications, and healthcare. The firm currently manages over $2 billion in assets and is based in Charlotte, NC (www.pamlicocapital.com).

“TMW was a tremendous investment for Pamlico and our limited partners. Dave Wangler and his team did an outstanding job of generating strong organic growth and enhancing the company’s position as a leader in the transportation technology market,” said Walker Simmons, a Partner at Pamlico.

TMW and Pamlico were advised by William Blair & Co. (financial advisor) and King & Spalding LLP (legal advisor). Trimble was advised by Lazard (financial advisor) and Weil Gotshal & Manges LLP (legal advisor).

© 2012 PEPD • Private Equity’s Leading News Magazine • 8-27-12

Centerbridge Partners Acquires Cardinal Logistics

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Cardinal Logistics Management, a provider of domestic transportation services, today announced that it has been acquired by Centerbridge Partners. Cardinal was a portfolio company of GTCR which acquired the company in 1997.

Cardinal is a provider of domestic transportation services including specialized equipment and handling, and integrated technology. Cardinal’s services include dedicated contract carriage, home and jobsite delivery, life sciences logistics, bulk transport, transportation management, supply chain consulting, SaaS solutions, and warehousing. Customers include AutoZone, Eastman Kodak, KraftMaid Cabinetry and Office Depot. The company is based in Concord, NC (www.cardlog.com).

“With the successful completion of this transaction, Cardinal is now better positioned than ever to serve our customers and continue our consistent long-term track record of strong, sustainable growth. The transaction also represents the start of an exciting new chapter in Cardinal’s history with the partnership and financial backing of Centerbridge, said Vin McLoughlin, Chairman of Cardinal.

Centerbridge Partners invests between $50 million and $300 million in US based leveraged buyouts and distressed securities. The firm has $20 billion of capital under management and is based in New York, NY (www.centerbridge.com).

Cardinal was advised by Kirkland & Ellis and Lazard (financial advisor). Centerbridge was advised by Latham & Watkins.

PEPD 8-7-12

Huron Capital Partners Acquires Charles G. Lawson Trucking

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Huron Capital Partners announced today that its portfolio company, Cardinal Agri-Logistics, has acquired Charles G. Lawson Trucking, in partnership with Lawson’s management team.

“We believe the addition of Lawson to Cardinal brings critical mass, expands our geographic footprint, further diversifies our customer base, and broadens our service capabilities. We are excited to join forces with Lawson to increase our level of service to existing customers and pursue new markets. Lawson’s reputation for food safety, service, and on-time delivery made this a very attractive addition to our existing platform,” said Jim Mahoney, a Partner at Huron.

Huron formed Cardinal Agri-Logistics in 2009 to invest in the highly-specialized, niche bulk liquid food-grade sector of the transportation and logistics industry. Cardinal’s first acquisition was Landes Trucking which serves grain processors throughout the Midwest. Lawson represents Cardinal’s second acquisition in this sector.

Charles G. Lawson Trucking is a regional provider of specialty food transportation services to the Southeast U.S. with terminal operations in Alabama, Georgia, and Louisiana. Lawson provides bulk liquid food-grade, refrigerated and dedicated van transportation services to food manufacturers. Lawson has been family-owned since its founding in 1976 and has grown to over 180 employees over the past 35 years. The company is headquartered in Montgomery, AL (no website found).

“We see many similarities with Landes and Lawson – each company starting many years ago with one truck. We have both built our businesses one lane at a time by providing excellent customer service and focusing on each and every detail. We are excited to continue this tradition in partnership with Landes and Huron,” said Billy Rotton, President of Lawson.

Cardinal Agri-Logistics transports a variety of bulk vegetable oils, tropical oils, and syrups to food manufacturing plants throughout the Midwest, and operates two kosher-certified tank wash facilities in Illinois. The company is based in Jacksonville, IL (www.landestruckinginc.com).

Huron Capital Partners invests up to $70 million per transaction in middle market companies that have revenues up to $300 million and EBITDAs of $5 million or more. Typical transaction values are from $20 million to $200 million. Sectors of interest include niche manufacturing, distribution and business services. Since its founding in 1999, Huron has acquired or invested in 59 companies with aggregate revenues in excess of $1 billion. Investments have been made in the US and Canada in a variety of areas, including print solutions & document management, education, healthcare products & services, specialty chemicals, specialty packaging, consumer products, home décor, passenger transportation services, building products, office furniture components and laboratory testing. Huron Capital currently manages over $600 million in committed equity through three private equity funds, and has offices in Detroit and Toronto (www.huroncapital.com).

The Carlyle Group Invests in Genesee & Wyoming

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The Carlyle Group announced today that it has agreed to invest up to $800 million in Genesee & Wyoming, an operator of short line and regional freight railroads, which will enable Genesee & Wyoming to acquire RailAmerica, a portfolio company of Fortress Investment Group, for an all cash purchase price of $2 billion. Genesee & Wyoming is an experienced acquirer of short line railroads, having integrated 65 railroads through 36 acquisitions since 1985. The transaction is expected to close in the fourth quarter of 2012.

Genesee & Wyoming owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. Operations currently include 66 railroads organized in 10 regions, with more than 7,600 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. The company provides rail service at 17 ports in North America and Europe and performs contract coal loading and railcar switching for industrial customers. Genesee & Wyoming is headquartered in Greenwich, CT (www.gwrr.com).

RailAmerica owns and operates short-line and regional freight railroads in North America, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 U.S. states and three Canadian provinces. The company is based in Jacksonville, FL (www.railamerica.com).

GWI’s acquisition of RailAmerica will combine the two largest short line and regional rail operators in North America. The transaction is transformational for GWI’s North American operations, as GWI will now operate 108 railroads over more than 12,000 track miles. The transaction increases GWI’s total revenues by nearly two-thirds to approximately $1.4 billion and doubles North American revenue to approximately $1.1 billion. Following the transaction, GWI will have 111 railroads (108 in North America), 15,120 miles of track (12,300 in North America), 1.9 million carloads (1.7 million in North America), 1,000 locomotives (900 in North America) and 4,300 employees (3,900 in North America).

Equity for the investment will come from Carlyle Partners V, a $13.7 billion U.S. buyout fund. Financing will be provided by Bank of America Merrill Lynch.

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 firm is based in Washington, DC (www.carlyle.com).

“We believe this partnership offers strategic benefits and will create significant operational synergies. Carlyle’s industry expertise and global network will help surface acquisition and growth opportunities that will strengthen GWI’s long-term profitability. We look forward to partnering with Jack and his team as we capitalize on these high quality assets and the favorable dynamics of the domestic and global rail industry,” said Greg Ledford, Carlyle Managing Director and Head of the Transportation and Industrial team.

Triangle Capital Invests in All Aboard America

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Triangle Capital Corporation announced today that it closed a $10 million investment consisting of subordinated debt and equity in All Aboard America, a regional motor coach operator.

All Aboard is a regional motor coach operator that provides commuter, charter, sightseeing, and scheduled route services in both the southwestern and southern United States. The company is based in Mesa, AZ (www.allaboardamerica.com).

Triangle Capital Corporation invests capital in established companies in the lower middle market to fund growth, changes of control and other corporate events. Triangle specializes in mezzanine financing with equity components and typically invests $5 million to $25 million per transaction in companies with annual revenues between $20 million and $200 million and EBITDAs between $3 million and $20 million. The firm is based in Raleigh, NC (www.TCAP.com).