CI Capital Partners has acquired Transplace, a provider of non-asset-based third party logistics and transportation management services. No financial terms were disclosed. Transplace was founded in 2000 by six U.S. freight carriers, and this year will generate more than $700 million in revenue from approximately 650 customers.
CI Capital Partners LLC, a New York-based private investment firm, and J.B. Hunt Transport Services Inc., Swift Transportation, U.S. Xpress Enterprises and Covenant Transportation Group, Inc., today announced that an affiliate of CI Capital Partners has acquired Transplace, a leading provider of non-asset based third party logistics (“3PL”) and transportation management services. Terms of the transaction were not disclosed.
Founded in 2000 by six of the largest freight carriers in the U.S., Transplace helps its customers manage complex logistics and shipping needs by providing customized solutions through a proprietary web-based platform. The company provides full transportation outsourcing, carrier contracting and negotiation, and freight brokerage services to a diversified blue chip customer base. As one of the top ten freight capacity brokers in the U.S. and a leading provider of 3PL services, Transplace generates revenue in excess of $700 million from approximately 650 customers.
Tom Sanderson, Transplace’s CEO said: “We are pleased to complete a transaction that will provide Transplace with the capital to continue its internal growth and take advantage of attractive acquisition opportunities. CI Capital Partners has a long track record of growing businesses, while building value and creating attractive opportunities for employees. I would also like to take this opportunity to thank our former owners, including J.B. Hunt Transport Services Inc., Swift Transportation, U.S. Xpress Enterprises and Covenant Transport for their support since our formation in 2000. They will continue to be part of our carrier network and we look forward to a continued mutually beneficial commercial relationship.”
Joost Thesseling, Principal at CI Capital Partners, said: “Transplace is an excellent growth platform in the 3PL and transportation management sector. We are very excited to have the opportunity to partner with Tom Sanderson, George Abernathy and the entire Transplace management team. The market for outsourced transportation is very large and fragmented, and we believe Transplace is well positioned to continue to expand its 3PL and freight brokerage businesses organically as well as through strategic acquisitions.”
CI Capital’s legal counsel is Paul, Weiss, Rifkind, Wharton & Garrison LLP. Transplace was represented by Thompson & Knight LLP.
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About CI Capital Partners
CI Capital Partners LLC is a New York-based private equity firm. Current CI Capital Partners portfolio companies include American Residential Services, a leading provider of HVAC and plumbing services; Prodigy Health Group, a rapidly expanding health care services company; Ply Gem Industries, one of the largest North American manufacturers of residential siding and windows; KIK Custom Products, the largest North American contract manufacturer of branded and retailer-branded consumer products; Conney Safety Products, a full-service distributor of safety products; and A-T Solutions, a national security and counter terrorism services company led by the former executives and board of directors of Anteon Corporation. To learn more about CI Capital Partners, please visit www.cicapllc.com.
Transplace is a non-asset based third-party logistics (3PL) provider offering manufacturers and retailers the optimal blend of logistics technology and transportation management services. From complete logistics management outsourcing to intelligent transportation management systems (TMS) to supply chain network planning and design to high-quality brokerage services, Transplace has proven the ability to deliver both rapid return on investment and consistent value to customers. The company is recognized among the elite 3PLs in North America by a customer base that includes many of the largest shippers in the world.
In 2009, Transplace was awarded with the Global Logistics and Supply Chain Strategies “100 Great Supply Chain Partners” distinction for the sixth consecutive year and was named by Supply & Demand Chain Executive as a “Top 100” provider in supply chain transformation for the fourth consecutive year. In addition, Transplace was recognized by Inbound Logistics as a Top 10 3PL for the seventh consecutive year. To learn more about Transplace or the people behind “I Am Transplace,” please visit www.transplace.com.
About J.B. Hunt
J.B. Hunt Transport Services, Inc. focuses on providing safe and reliable transportation services to a diverse group of customers throughout the continental United States, Canada and Mexico. Utilizing an integrated, multimodal approach, the Company provides capacity-oriented solutions centered on delivering customer value and industry-leading service. The Company’s stock is traded on NASDAQ under the ticker symbol JBHT and is a component of the Dow Jones Transportation Average and the NASDAQ-100 Index. For more information, please visit www.jbhunt.com.
About Swift Transportation
Swift Transportation Co., Inc., a wholly owned subsidiary of Swift Corporation, operates the largest fleet of truckload carrier equipment in the United States consisting of approximately 16,700 tractors, 49,300 trailers and 5,700 intermodal containers. Operating from 35 major terminals located strategically across the United States and Mexico, Swift provides strong, regional operations, an expanding intermodal division, and various specialty and dedicated services to its customers while focusing on safety and service through its 20,800 employees and independent contractors. For more information, please visit www.swifttrans.com.
About U.S. Xpress Enterprises
U.S. Xpress Enterprises, Inc. is the nation’s third-largest privately-owned truckload carrier. U.S. Xpress Enterprises, Inc. provides dedicated, regional, and expedited team truckload services throughout North America. Xpress Global Systems, a wholly owned subsidiary, is a provider of transportation, warehousing and distribution services to the floor covering industry. The consolidated group of companies includes U.S. Xpress, Inc.; Arnold Transportation Services, Inc.; Total Transportation of MS; and C&C Transportation of Duncan, SC. For more information, please visit www.usxpress.com.
About Covenant Transport
Covenant Transportation Group, Inc. is the holding company for several transportation providers that offer premium transportation services for customers throughout the United States. The consolidated group includes operations from Covenant Transport and Covenant Transport Solutions of Chattanooga, Tennessee; Southern Refrigerated Transport of Texarkana, Arkansas; and Star Transportation of Nashville, Tennessee. The Company’s Class A common stock is traded on the NASDAQ Global Select under the symbol CVTI. For more information, please visit www.covenanttransport.com.