Main Street Capital, a buyout firm based in Houston, Texas, has purchased trucking company Smokey Point Distributing alongside Dallas investor Don R. Daseke and Smokey Point CEO Dan Wrikkala, for $34 million. Allegiance Capital advised the sell side.
Allegiance Capital Corporation, a full-service investment banking firm servicing middle market companies worldwide, announces the sale of Smokey Point Distributing, Inc., an Arlington, Wash.-based specialty trucking and logistics company, to Dallas investor Don R. Daseke and two partners — Dan Wirkkala, president and CEO of Smokey Point Distributing, Inc. and Main Street Capital of Houston, Texas.
Under the terms of the transaction, Smokey Point was acquired by the investors for $34 million, with PNC Business Credit, the asset-based lending arm of PNC Bank, National Association, providing the senior, first lien debt financing, and Main Street Capital providing second lien debt and equity financing. Allegiance Capital, acting on behalf of the seller, was the investment bank for the transaction.
As an established leader in a niche sector of the trucking and logistics industry, Smokey Point specializes in handling difficult to transport truck load shipments, both legal and oversize / overweight, as well as less-than-truckload consolidation, serving a diverse customer base in the aerospace industry as well as all other commodity groups. A successful less-than-truckload carrier, Smokey Point currently operates out of the company’s primary terminal just north of Seattle, and from a second location in Wichita, Kansas. Following this transaction, Smokey Point will be positioned to expand operations by opening another transportation terminal in Southern California in 2009, followed by two additional terminals in the eastern seaboard in the future.
According to John Sloan, vice chairman, and Jason Hiebert, vice president of Allegiance Capital, the lead investment bankers on the transaction, Allegiance Capital was able to attract several potential investors, despite a difficult credit market. “The challenge with Smokey Point was a tight credit market, an economic downturn and an industry that is out-of-favor for investors,” noted Hiebert.
Sloan added, “The completion of this transaction illustrates that middle market transactions are getting done despite the difficult financial news being reported almost every day. We worked hard to overcome the combined effects of an economic recession and a strained credit market.”
Daseke noted that although the trucking industry has been affected by the economic recession, Smokey Point has carved out a niche for itself in the trucking and logistics space, serving a diversified customer base in the aerospace industry in addition to moving difficult to handle shipments. Mr. Daseke stated, “I believe Smokey Point is primed for continued growth under the capable leadership of Dan Wirkkala and his management team.”
Daseke added, “Allegiance Capital did an outstanding job of bringing this transaction to a rewarding close. The Allegiance Capital bankers listened to my objectives and were able to negotiate a transaction that enabled us to retain Smokey Point’s key management team, while helping us position the company for future growth.”
Named chairman of the Smokey Point board of directors, Mr. Daseke holds similar positions in other companies, including East Teak Fine Hardwoods; Liquid Motors, Inc. and Armorsmith Company. He is also director of Pandigital Corporation, an advisory director of SKH Energy Fund and Antares Exploration Fund, Chairman of WaterTower Theatre Board of Directors; a trustee of DePauw University and Vice-Chairman of the Addison (Texas) Planning & Zoning Commission.
About Allegiance Capital:
Allegiance Capital Corporation is a full-service investment banking firm specializing in the middle market (companies with revenue from $20 million to $500 million), with offices in Dallas, New York, Minneapolis/St. Paul, Vancouver, British Columbia, Shanghai, Tel Aviv and Madrid. Through its worldwide network, Allegiance Capital assists companies in every aspect of selling and financing a business, including debt restructuring, mezzanine financing, buy out management, strategic partnering, consulting and other related services. Through its newly created Special Situations group, the Company handles financial restructuring and distressed mergers and acquisitions. For more information, refer to the company website at www.allcapcorp.com.
About Smokey Point Distributing Inc.:
A full service trucking and logistics company based in Arlington, Wash. That specializes in less than truckload (LTL), truckload (TL), general commodities and heavy haul transportation, Smokey Point Distributing offers broad time-saving solutions for client transportation needs. The company partners with customers to maximize transportation dollars while making service a top priority. Offering expedited service when required and a fleet of trucks, flatbeds, step decks, lowboys, and curtain van trailers driven by “team drivers,” Smokey Point provides flexibility to meet any shipping requirement. For more information, go to www.spdtrucking.com.
About Main Street Capital:
Main Street (www.mainstcapital.com) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies. Main Street’s investments are made to support management buyouts, recapitalizations, growth financings and acquisitions of companies that operate in diverse industry sectors and generally have annual revenues ranging from $10 to $100 million. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides “one stop” financing alternatives to its portfolio companies.