Platinum Equity said Monday it sold Neovia Logistics to Goldman Sachs and Rhône Capital. Financial terms weren’t announced. Neovia Logistics provides warehouse management and fulfillment services, distribution solutions and logistics services. Platinum Equity acquired 65 percent of the business, formerly Caterpillar Logistics Services, in July 2012 while Caterpillar retained a 35 percent stake. Macquarie Capital and UBS served as financial advisors to Platinum Equity. Goldman Sachs and Deutsche Bank Securities acted as financial advisors to the buyer.
LOS ANGELES, CA–(Marketwired – October 13, 2014) – Platinum Equity announced today the planned sale of Neovia Logistics to an affiliate of Goldman Sachs and investment funds affiliated with Rhône Capital L.L.C. Financial terms of the transaction were not disclosed. The closing of the transaction is pending customary closing conditions including regulatory approvals.
Neovia Logistics provides warehouse management and fulfillment services, distribution solutions and other value-added logistics services through a network of more than 90 facilities in 25 countries around the world. Platinum Equity acquired 65 percent of the business (formerly Caterpillar Logistics Services) in July 2012 and Caterpillar Inc. (NYSE: CAT) retained a 35 percent stake. The business was rebranded Neovia Logistics at the end of 2012.
Platinum Equity Partner Jacob Kotzubei said Neovia Logistics’ success is the result of a lot of hard work from everyone involved.
“We achieved everything we set out to, establishing Neovia as an industry leader with a great management team, a strong corporate culture, and all the tools it needs to continue succeeding long term,” said Mr. Kotzubei. “We are pleased with the value created on behalf of the company’s employees, customers and our minority partners at Caterpillar.”
As part of the sale announced today, Caterpillar will be exiting its position in Neovia Logistics as well.
Highlights of operational initiatives undertaken during Platinum Equity’s stewardship include:
• Effected a complex carve out from Caterpillar and established Neovia Logistics as a standalone business with a new corporate identity.
• Assembled a top-flight management team led by CEO Jos Opdeweegh, an experienced leader in the logistics industry brought in to drive the transformation of the business, and President Dan Spellman, a veteran of Caterpillar Logistics Services.
• Delivered on a commitment to growth by expanding Neovia Logistics’ service offerings, global presence and customer base.
• Acquired the contract logistics division of MIQ Holdings, Inc. in June 2013 to expand opportunities in end markets like technology, retail and healthcare.
Macquarie Capital and UBS served as financial advisors to Platinum Equity on the sale of Neovia Logistics. Bingham McCutchen served as legal advisor to Platinum Equity on the transaction. Goldman Sachs and Deutsche Bank Securities acted as financial advisors, and Davis Polk & Wardwell acted as legal advisor, to the buyer syndicate.
About Platinum Equity
Founded by Tom Gores in 1995, Platinum Equity is a global investment firm with more than $7 billion in assets under management and a portfolio of operating companies that generated approximately $15 billion in revenue in 2013. Platinum Equity specializes in mergers, acquisitions and operations — a trademarked strategy the firm calls M&A&O® — acquiring and operating companies in a broad range of business markets, including manufacturing, information technology, telecommunications, transportation and logistics, media, equipment rental, metals and other industries. Over the past 19 years Platinum Equity has completed more than 150 acquisitions. For more information, visit Platinum Equity’s website: www.platinumequity.com.
About Neovia Logistics:
Neovia is the global, integrated logistics service provider for companies facing complex logistics challenges. Today, Neovia provides customer-centric supply chain solutions across six continents in key sectors including industrial, automotive, mining, maintenance, repair and operations (MRO), oil and gas, consumer durables, aerospace and defense, high tech and electronics, and health care. Neovia provides end-to-end supply chain solutions with specific expertise in value chain strategy, network design, and execution. The Neovia team creates and employs innovative technology and systems to provide customized services in management of warehouses, operations, inventory, and transportation, as well as inbound manufacturing, reverse logistics, and more. Visit www.neovialogistics.com