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Back to blog July 02, 2019 2 Comments Author: Andy Jones

Private Equity Investing in Logistics Companies

We reported logistics as a sector of investment focus for private equity firms in May 2019. However, logistics, as an industry sector, has been increasingly more interesting to private equity firms for some time now.

Our M&A Research Database shows 544 current PE-owned portfolio companies in the logistics space and an increasing PE appetite for logistics companies over time.

NOTE – 2019 is not a projection but an annualized amount, based on deals recorded thus far in 2019.

While a portion of this upward trend echoes the overall growth in private equity across all industries, logistics seems to be a favored industry.

Notable 2019 Private Equity Investments in Logistics Companies

January 2019

Nonantum Capital Partners recapitalized RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics is a full-service intermodal transportation and related logistics company.

 

Brixey & Meyer Capital BMC Growth Fund II acquired CityDash.

CityDash is a courier, trucking and logistics provider. CityDash offers same day courier services, small package delivery, expedited palleted freight, full truckload, and brokerages services.

 

PFM Capital invested in TAM International through its SaskWorks and APEX II funds.

TAM International is a global freight forwarder focused on providing a full scope of logistics solutions for Class 7 and other specialized material.

 

February 2019

Optimal Investment Group acquired Mannings Truck Brokerage. OIG partnered with Resurgent Capital Partners on the acquisition.

Mannings Truck Brokerage is a provider of outsourced logistics services.

 

March 2019

BBH Capital Partners completed a growth equity investment in Bradford Airport Logistics.

Bradford Airport Logistics is a provider of advanced logistics services within the global aviation industry. The company provides logistics services and security screening of goods entering the airport terminal complex.

 

Mason Wells acquired RJW Logistics Group, Inc.

RJW Logistics Group, Inc. is a supply chain solutions provider, with a specialized focus on LTL consolidation services.

 

May 2019

Wind Point Partners acquired A&R Logistics in partnership with President and CEO Mark Holden. The company was acquired from Mason Wells.

A&R Logistics is a provider of integrated dry bulk logistics solutions for the chemical and plastic industries.

 

Fort Point Capital recapitalized AMS Fulfillment Holdings.

AMS Fulfillment Holdings is a full service outsourced logistics provider offering order management, warehouse and inventory management, reverse logistics and other value-added, complex fulfillment services.

 

AE Industrial Partners acquired a majority interest in Alpine Air Express, Inc.

Alpine Air Express, Inc. is a logistics and transportation platform providing regional air cargo services throughout the Mountain Region of the Western United States.

 

Argosy Private Equity Fund V invested in DSI Logistics.

DSI Logistics is a third-party logistics firm specializing in “white glove” home delivery.

 

June 2019

Aurora Capital Partners acquired Petroleum Service Corporation from SGS (SGSN:SW).

Petroleum Service Corporation provides product handling and site logistics services for the petrochemical, refining, midstream and marine transportation end markets.

 

H.I.G. Capital acquired Cardinal Logistics.

Cardinal is a provider of dedicated transportation and logistics services in North America.

 

Uniprop acquired R & R Freight.

R & R Freight is a freight distribution, logistics and warehousing company in North Branford, CT.

 

Most Active Investment Banks on PE-Logistics Deals

While no one investment bank is absolutely dominating the logistics sector (involving private equity platform investments), four I-banks lead the pack by way of number of logistics transactions to private equity firms:

  1. Harris Williams & Co.
  2. KPMG Corporate Finance
  3. BB&T Capital Markets
  4. PricewaterhouseCoopers Corporate Finance

 

Most Active Law Firms Advising on PE-Logistics Deals

Unlike the investment banks, where deals seem more evenly spread, there is one law firm in particular that seems to have an unusually high share of the logistics transactions involving private equity firms. That is, Kirkland & Ellis with 12 logistics – PE platform deals followed by Weil Gotshal & Manges with 5 deals.

 

 

2 Comments:

Mark Borkowski 5 days ago

Very interesting information. A number of mid market asset light and asset based Logistics companies have expressed interest in selling. Mark Borkowski, pres. Mercantile Mergers & Acquisitions Corp

Andy Jones 15 hours ago

Mark,

Thank you for your comment. Interesting to hear you have the same pulse on this as well.
– Andy