A&A’s Latest Advisory Services Transactions
Armstrong & Associates Advises ICV Partners on its Investment in Horizon Air Freight
Investment solidifies ICV’s focus in the transportation and logistics sector
ICV Partners, LLC, a leading investment firm focused on middle market companies, announced October 3, 2019 its investment in Horizon Air Freight, Inc., a specialized freight forwarder focused on the marine industry serving leading U.S. and international shipping companies and cruise lines.
Armstrong & Associates, Inc. acted as an advisor on the transaction.
Founded in 1970 and headquartered in New York, Horizon Air Freight manages and consolidates marine spare parts inventory and arranges for delivery of parts and supplies to customer vessels anywhere in the world. HAF specializes in logistics for difficult and urgent shipments where reliability and visibility are essential.
During Armstrong & Associates’ 3PL Value Creation North America Summit last month, 3PL and investment industry leaders alike agreed that buyers are seeking out companies with acute specializations that can be used to attract new customers or cross sell to existing customers. Buyers and investors also want companies with strong management teams, cultures, and training. A faster growth ramp-up time is especially attractive to private equity investors.
ICV’s investment solidifies its focus in the transportation and logistics sector. Previous investments include Cargo Airport Services, another Queens, New York based logistics business.
Armstrong & Associates Advises Hub Group on $255 Million CaseStack Acquisition
Third-party logistics provider Hub Group will acquire logistics platform CaseStack
Hub Group, Inc. has entered into an agreement to acquire technology-enabled logistics platform CaseStack, Inc. The $255 million cash deal is expected to close by early December 2018. Armstrong & Associates, Inc. acted as an advisor to Hub Group on the transaction.
The announcement is the latest in a series of large third-party logistics (3PL) transactions in 2018. 3PL and investment industry leaders convened last month at Armstrong & Associates’ 3PL Value Creation North America Summit. Executives overwhelmingly anticipate merger & acquisition activity will remain strong through 2018 and 2019 in this sellers’ market. With more than $1 trillion “dry powder” capital, private equity activity is soaring, while strategic buyers are looking for good fits in complementary service portfolios, customer bases, and strong management.
In addition to CaseStack’s technology-enabled LTL-focused freight brokerage business line, the Santa Monica, CA-based company offers retailer-driven consolidation services in North America to consumer packaged goods companies. Revenue was $242 million and EBITDA was approximately $22 million in the 12-month period ending September 30, 2018. CaseStack has a non-asset business model.
Dave Yeager, Hub Group’s Chairman and Chief Executive officer, cites strong opportunities for network optimization with customers, as well as an enhanced and diversified addition to Hub Group’s service offerings. CaseStack’s senior leadership team will remain with the business.
Hub Group ranks 22nd on Armstrong & Associates’ Top 50 Global Third-Party Logistics Providers list, based on 2017 gross revenue.
Armstrong & Associates Advises CJ Logistics on its $216 Million Investment in DSC Logistics.
June 08, 2018
South Korea’s CJ Logistics will acquire a majority stake in Des Plaines, Ill.-based DSC Logistics.
CJ Logistics acquisition of Chicago-based big box warehousing 3PL, DSC Logistics will help CJ Logistics expand its North American footprint and customer base, and allows it to cross sell international transportation management and other services to existing DSC customers. In turn, current DSC customers can also benefit from CJ Logistics’s extensive international transportation management capabilities and large Asian network, which includes CJ Rokin one of the largest integrated 3PLs in China.
CJ Logistics is the largest parcel carrier and a leading 3PL in South Korea. Its 2017 gross logistics revenue was $4.5 billion (excluding its parcel business). CJ Logistics’ 3PL service offering includes: Domestic and International Transportation Management, Value-Added Warehousing & Distribution and Port Services. FMCG accounts for 40% of its revenue, followed by Industrials at 16%, Chemicals and Fashion at 13% each, then Auto/Parts and High-Tech at 9% each.
Its 2017 freight forwarding volumes were 310,850 ocean TEUs and 57,014 air freight metric tons. Its warehousing network consists of 394 warehouses totaling 38 million square feet of space (with 108 warehouses in China alone). Its regional network breakdown is: 41% Southeast Asia, 36% China, 13% America, 10% Other.
Armstrong & Associates Authors Global Third-Party Logistics Market Information Report for Coyote Logistics Supporting its Sell to UPS for $1.8 Billion
August 18, 2015
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide.
Coyote Logistics, a UPS subsidiary, is headquartered in Chicago, IL, and was founded in 2006 and is one of the most innovative, fast-growing third-party logistics (3PL) service providers in North America. Coyote offers services for all consultative, executional, and transactional supply chain needs. Coyote arranges transportation for more than 6,000 loads per day for shippers of all sizes and industries, from Fortune 100 companies to small businesses. It had reported revenue of $2.1 Billion in 2014.
Armstrong & Associates Authors Global Third-Party Logistics Market Information Report for Neptune Orient Lines Supporting its Divesture of APL Logistics to Kintetsu World Express Inc. for $1.2 Billion
February 17, 2015
Armstrong & Associates Authors Global Third-Party Logistics Market Information Report for Kerry Logistics Network Limited on Its Spinoff and US$282 Million Initial Public Offering
December 18, 2013
Armstrong & Associates, Inc. authors Global Third-Party Logistics Market Information Report for Kerry Logistics Network Limited (Kerry Logistics) in connection with its spinoff, initial public offering and listing on the Hong Kong Stock Exchange and an international offering in reliance on Rule 144A and Regulation S. The gross proceeds from the global offering is approximately HK$2.2 billion (approximately US$282 million) prior to any exercise of the over-allotment option.
Prior to the spinoff, Kerry Logistics was a wholly owned subsidiary of Kerry Properties Limited, a company listed on the Hong Kong Stock Exchange (stock code: 683) and principally engaged in property development, investment and management in Hong Kong, China and the Asia-Pacific Region, and hotel ownership and operations in Hong Kong and China. Kerry Logistics is a leading logistics service provider in Asia, with extensive operations across Greater China and other countries in the region, as well as the largest Hong Kong-based international third-party logistics service provider. Kerry Logistics is principally engaged in the integrated logistics and international freight forwarding businesses and currently has more than 400 service locations in 35 countries and territories across Asia, Australia, Europe, and North and South America.
BOCI Asia Limited (BOCI), Citigroup Global Markets Asia Limited (Citi), HSBC Corporate Finance (Hong Kong) Limited and Morgan Stanley Asia Limited (Morgan Stanley) acted as the joint sponsors for the offering. BOCI, Citi, The Hongkong and Shanghai Banking Corporation Limited and Morgan Stanley were the joint global coordinators, joint lead managers and joint bookrunners. CIMB Securities Limited is also one of the joint bookrunners. DBS Asia Capital Limited and Mizuho Securities Asia Limited are also joint lead managers.
The Armstrong & Associates team developing the report for the Hong Kong Prospectus included: Evan Armstrong, Richard Armstrong, Amy St. Peter, and Eric Xiang. Members of the A&A team are based in its Wisconsin, USA, and Wuhan, China offices.
Armstrong & Associates Advises Kleiner Perkins Caufield & Byers on its $18 Million Investment in uShip
December 19, 2012
uShip.com, announced today it has closed an $18M round of Series C financing with Kleiner Perkins Caufield & Byers (KPCB). Armstrong & Associates, Inc. acted as advisors to the transaction supporting KPCB’s operational due diligence efforts. Funds will primarily be used by uShip to extend the development, sales and marketing of uShip’s commercial freight platform, mobile platform and global presence. Maritza Liaw, Partner at KPCB, will join uShip’s Board of Directors.
uShip.com is the world’s largest and most trusted transportation marketplace primarily serving the freight, household goods and vehicle shipping markets. Consumers and businesses can compare and book upfront quotes, name their own price or receive auction-style bids from thousands of customer-reviewed Transportation Service Providers, ranging from independent owner-operators to the largest freight carriers and brokers. uShip launched in 2004 and is based in Austin, Texas.
Kleiner Perkins Caufield & Byers has backed entrepreneurs in more than 500 ventures leading to 150 IPOs, 350,000 jobs and a deep strategic network. The firm invests in all stages from seed and incubation to growth companies, and has helped build pioneering companies like Amazon, Google, Intuit, Symantec, and WebMD. KPCB operates from offices in Menlo Park, San Francisco, Shanghai and Beijing.
Armstrong & Associates Advises DHL Freight on its Acquisition of Standard Forwarding
June 6, 2011
DHL Freight has acquired Standard Forwarding, a less-than-truckload carrier based in East Moline, Illinois. Armstrong & Associates, Inc. acted as advisors to the transaction supporting DHL’s operational due diligence efforts.
About Standard Forwarding
Standard Forwarding is a Midwest regional LTL carrier with service in Illinois, Iowa, Indiana, Minnesota, Wisconsin, St. Louis, MO, Omaha, NE, and southern Michigan.
As part of Deutsche Post DHL, DHL is a global market leader in the logistics industry. It provides customers with international express, air and ocean freight, road and rail transportation, contract logistics and international mail services through a global network of more than 220 countries, and territories and about 275,000 employees worldwide. DHL Freight is the road freight division of Deutsche Post DHL.
Armstrong & Associates Advises Alexander & Baldwin on its acquisition of Pacific American Services
September 2, 2008
Alexander & Baldwin, Inc. (NASDAQ:ALEX) (A&B) announced today that its Matson Global Distribution Services subsidiary (Matson Global) has completed the acquisition of Pacific American Services, LLC., (PACAM), a leading regional, asset-light warehousing, packaging and distribution company specializing in value-added handling of domestic, import and export goods. Armstrong & Associates, Inc. acted as advisors to the transaction supporting A&B’s and Matson Global’s operational due diligence efforts.
About Alexander & Baldwin
Alexander & Baldwin, Inc., headquartered in Honolulu, Hawaii is engaged in ocean transportation and logistics services through its subsidiaries, Matson Navigation Company, Inc., Matson Integrated Logistics, Inc. and Matson Global Distribution Services; in real estate through A&B Properties, Inc.; and in food products through Hawaiian Commercial & Sugar Company and Kauai Coffee Company, Inc. Additional information about A&B may be found at its web site: www.alexanderbaldwin.com. A&B Properties is Hawaii’s fourth largest private landowner; its diverse pipeline of projects is located on some of the 89,000 acres it owns in Hawaii, or on lands more recently acquired or being developed in joint ventures with third parties, including projects on Oahu, Maui, Kauai, the Big Island and in California.