A&A’s Latest M&A Advisory Transactions
- Armstrong & Associates Advises Palladium Equity Partners in Source Logistics Acquisition
Investment in the consumer goods sector focusing on Hispanic food and beverage brands will benefit from favorable industry tailwinds.
Palladium Equity Partners, LLC, a private equity investment firm based in New York, announced on November 2, 2023, its investment in a majority stake in Source Logistics, a provider of value-added warehousing, distribution, and fulfillment third-party logistics (3PL) services to the consumer goods sector with a focus on Hispanic food and beverage brands. Source Logistics serves its customers from 12 strategically located facilities across four states – California, Texas, New Jersey, and Oregon.
This will be the 26th closed investment transaction supported by Armstrong & Associates, Inc. as the buy-side search advisor.
- Armstrong & Associates Advises Redwood on its Investment in Rockfarm
The investment solidifies Redwood’s modern 4PL, tech-enabled managed services, and supply chain integration capabilities.
Armstrong & Associates, Inc. (A&A), an internationally recognized leader in third-party logistics market information and consulting, is pleased to announce its role as the sole buy-side search advisor for Redwood Logistics in its acquisition of Rockfarm Supply Chain Solutions and Global Distribution and Logistics (Rockfarm) announced July 11.
“It was great working with the A&A team as our sole buy-side search advisor to secure our recent Rockfarm deal. We expect significant value creation and growth with Rockfarm and are mutually focused with the A&A team in closing more deals in the future,” said Mark Yeager, Chief Executive Officer of Redwood Logistics.
“Partnering with Redwood to find suitable acquisition prospects via our M&A practice has been a great experience. Redwood has a clear vision and knows what it wants in an acquisition target. The deal solidifies Redwood’s modern 4PL services, tech-enabled managed services, and supply chain integration capabilities,” said Evan Armstrong, Chief Executive Officer, Armstrong & Associates, Inc.
Redwood’s recent acquisitions include its January 2019 acquisition of Atlanta-based LTL freight manager LTX Solutions, Chicago-based technology-based freight broker Strive Logistics, March acquisition of TMS services provider Eminent Global Logistics, and May acquisition of Eminent Global Logistics.
In 2021, Redwood Logistics expanded its parcel offering by acquiring Skipjack, a multi-carrier SaaS parcel platform, and Proactive Global Logistics, a non-asset-based parcel service provider. In addition, Redwood was acquired by private equity firm AEA Investors LP.
In 2022, Redwood landed on Armstrong’s Top 50 U.S. 3PLs list for the first time, placing 48th.
Armstrong will continue to focus on pursuing complementary targets for Redwood to further expand its network scale, transportation management offerings, and freight under management by finding best-in-class prospects to expand Redwood’s portfolio.
This will be the 25th closed investment transaction supported by Armstrong & Associates, Inc. as the sole buy-side search advisor.
- Armstrong & Associates Advises CVC Capital Partners in Worldwide Express and GlobalTranz Merger
The investment provides a leading organization with unique technology and marketing solutions for the freight and parcel markets.
CVC Capital Partners, a leading private equity and investment advisory firm, announced on June 11, 2021, its investment in the merger of Worldwide Express, LLC and GlobalTranz Enterprises, LLC.
This will be the 24th closed investment transaction supported by Armstrong & Associates, Inc.
- 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 on October 3, 2019, its investment in Horizon Air Freight, Inc., a specialized freight forwarder concentrated 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 complex 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 agreed that buyers seek companies with acute specializations that can 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 lovely to private equity investors.
ICV’s investment solidifies its focus in the transportation and logistics sector. Previous investments include Cargo Airport Services, another logistics business based in Queens, New York.
- Armstrong & Associates Advises Hub Group on $255 Million CaseStack Acquisition
Third-party logistics provider Hub Group will acquire the logistics platform CaseStack.
Hub Group, Inc. has agreed to acquire technology-enabled logistics platform CaseStack, Inc. The $255 million cash deal will 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 in “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 its technology-enabled LTL-focused freight brokerage business line, CaseStack, based in Santa Monica, CA, 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 substantial opportunities for network optimization with customers and an enhanced and diversified addition to Hub Group’s service offerings. CaseStack’s senior leadership team will remain with the business.
Based on 2017 gross revenue, Hub Group ranks 22nd on Armstrong & Associates’ Top 50 Global Third-Party Logistics Providers list.
- 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 allow 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 sizeable 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, and 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, and 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
About UPS
UPS (NYSE: UPS) is a global leader in logistics. It offers a wide range of solutions, including transporting packages and freight, facilitating international trade, and deploying advanced technology to manage the world of business more efficiently. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide.
About Coyote
Coyote Logistics, a UPS subsidiary, is headquartered in Chicago, IL, and was founded in 2006. It is one of North America’s most innovative, fast-growing third-party logistics (3PL) service providers. Coyote offers services for all consultative, execution, and transactional supply chain needs. Coyote arranges transportation for more than 6,000 loads daily 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) before any exercise of the over-allotment option.
Before 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 regional countries. It is also the most prominent Hong Kong-based international third-party logistics service provider. Kerry Logistics is principally engaged in integrated logistics and international freight forwarding businesses. It 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 joint sponsors for the offering. BOCI, Citi, The Hong Kong and Shanghai Banking Corporation Limited, and Morgan Stanley were the joint global coordinators, joint lead managers, and joint book-runners. CIMB Securities Limited is also one of the joint book-runners. DBS Asia Capital Limited and Mizuho Securities Asia Limited are joint lead managers.
The Armstrong & Associates team that was 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 that it has closed a $18M round of Series C financing with Kleiner Perkins Caufield & Byers (KPCB). Armstrong & Associates, Inc. advised 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.
About uShip
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 price, or receive auction-style bids from thousands of customer-reviewed Transportation Service Providers, independent owner-operators, and the largest freight carriers and brokers. uShip launched in 2004 and is based in Austin, Texas.
About KPCB
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. advised the transaction and supported 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.
About DHL
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 / Matson Global 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.