H.I.G. Capital has sold Capstone Logistics, a provider of outsourced supply chain services, to The Jordan Company. Financial details were not disclosed.
H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with more than $15 billion of equity capital under management, announced today the sale of its portfolio company, Capstone Logistics (“Capstone”), to The Jordan Company, a private equity firm based in New York.
Based in Atlanta, GA, Capstone is the leading provider of outsourced supply chain solutions at nationwide distribution centers catering to the grocery, foodservice, retail, automotive, and 3PL verticals. Capstone was formed in 2011 through the merger of two industry leading players, Progressive Logistics Services, a portfolio company of H.I.G., and LMS Intellibound, a portfolio company of MSouth Equity Partners.
Currently operating within over 230 sites, Capstone has highly recurring revenue through long-term contracts with a blue-chip customer base of household names. Through its high quality service focus, productivity-driven operating model, and value-added infrastructure, Capstone enhances distribution center efficiency and provides tangible cost savings to customers.
“H.I.G. and MSouth have been outstanding and committed partners, and a valuable sounding board for the Capstone management team. We have appreciated their guidance in creating Capstone, defining its strategic positioning, and supporting various operational improvement and growth initiatives,” said Steve Taylor, CEO of Capstone.
“We created an industry leading brand in Capstone, and management flawlessly executed on its strategic initiatives to deliver a highly differentiated client value proposition,” commented Camilo Horvilleur, Principal of H.I.G. “A transaction providing more than 10x cash-on-cash returns to H.I.G. and its investors speaks volumes for the quality of the Capstone business.”
“We are very proud of what we have accomplished together with the Capstone management team,” commented Jeff Zanarini, a Managing Director of H.I.G. “The Company achieved phenomenal growth during our ownership, including more than doubling the combined ebitda of the original entities. Through its innovative, data-driven approach to workforce management and relentless focus on training and safety, we have every confidence that Capstone will maintain and grow its leadership position in all things logistics.”
About H.I.G. Capital
H.I.G. is a leading global private equity investment firm with more than $15 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York, and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.