Greatwide Logistics Services, a Dallas-based provider of third-party logistics services, has acquired the dedicated contract carriage division of YRC Logistics. No financial terms were disclosed. Centerbridge Partners bought Greatwide out of bankruptcy earlier this year.
Greatwide Logistics Services, a national provider of third-party logistics services, today announced the acquisition of the contracts, personnel and equipment of the Dedicated Contract Carriage division of YRC Logistics, a subsidiary of YRC Worldwide Inc. (NASDAQ: YRCW). The business will be integrated under the Greatwide Logistics Services brand immediately.
Greatwide will acquire all of the customer contracts from Dedicated Contract Carriage, which include customers in the grocery, steel and auto industries, located in 29 operating locations throughout the country.
“The business obtained through the acquisition of YRC Logistics’ Dedicated Contract Carriage aligns perfectly with our industry-leading position in providing dedicated transportation to food and grocery, consumer products and retail customers, while also strengthening our presence in the industrial sector of the market,” said Raymond Greer, CEO of Greatwide Logistics Services. “This acquisition allows us to expand our capabilities to include flatbed dedicated service and apply our transportation management services expertise to new industrial shippers.”
In February 2009, Greatwide Logistics Services was purchased by affiliates of Centerbridge Partners, a leading private investment firm, and other investors.
“We are pleased with the acquisition of YRC Logistics’ dedicated business, which fits squarely into Greatwide’s core dedicated operations. We will fund this acquisition with an additional equity investment and will continue to support the company with additional investments to opportunistically pursue acquisitions that are consistent with Greatwide’s long-term strategic plan,” said Will Manuel, Senior Managing Director of Centerbridge Partners. “Post-acquisition, the company will continue to have no cash-pay debt on the balance sheet.”
Greatwide Logistics Services is the second-largest dedicated contract carriage provider in the United States. The company also provides transportation management services, freight brokerage and warehousing service to more than 1,300 clients.
“This acquisition is consistent with our strategic growth plan and reinforces our position as a top third-party logistics provider,” added Leo Suggs, Chairman of Greatwide Logistics Services.
About Greatwide Logistics Services
Greatwide Logistics Services is a privately held third-party logistics provider serving the United States and Canada. Greatwide offers an integrated service platform to customers including dedicated contract carriage, transportation management services, irregular route truckload, full-service truckload brokerage, warehouse-based logistics and transportation management services. Greatwide is the second largest provider in dedicated refrigerated transportation. The company is 11th among Transport Topics’ top 50 logistics providers, a top 70 3PL provider by Food Logistics and a top 100 motor carrier by Inbound Logistics. For more information, visit www.greatwide.com.
Centerbridge Partners was established in 2006 and currently has approximately $10 billion in capital under management across several funds. The firm is dedicated to partnering with world class management teams to invest across multiple stages of a Company’s life cycle and to employ various strategies to help companies achieve their operating and financial objectives. Centerbridge’s limited partners include many of the world’s most prominent financial institutions, university endowments, pension funds, and charitable trusts.