McNally Capital has sold ITS Logistics, a third-party logistics provider. No financial terms were disclosed. Lincoln International served as the sell-side advisor to ITS Logistics while Ropes & Gray LLP served as legal counsel.
CHICAGO–(BUSINESS WIRE)–McNally Capital (“McNally”), a leader in Direct Family Capital, is pleased to announce the sale of ITS Logistics (“ITS” or the “Company”). ITS is a leading third-party logistics provider that delivers a variety of services in supply chain management, freight logistics, distribution/fulfillment, and transportation management.
McNally invested in ITS in partnership with the Company’s founders–Jeff Lynch, Dan Allen, and Darryl Bader–and with Coughlin Capital, a family office with decades of experience in the supply chain and logistics industry. McNally’s investment in ITS stemmed from the firm’s investment thesis in third-party logistics and was consistent with the firm’s strategy of partnering with founders and management owners to provide them with family capital.
Scott Pruneau, CEO of ITS, stated, “ITS Logistics has a strong foundation and rich history. Our partnership with McNally Capital has proven to strengthen our Company even more, positioning us to exceed our strategic goals and expand our vision of improving the quality of life for our stakeholders. We appreciate the value the firm has created for us and how their partnership has further established ITS as a leading third-party logistics provider.”
McNally Capital partnered on the investment with Coughlin Capital. Coughlin Capital has significant experience in owning and scaling logistics businesses, having owned and operated several businesses in the industry, including F.X. Coughlin, an integrated supply chain provider. The Company also brought on Phil Rooney, former CEO of Waste Management and former President of Service Master, as a Board Member who also brought his extensive transportation and logistics expertise to ITS. Both industry partners were invaluable and worked alongside the founders, management team, and McNally Capital to develop a long-term strategic plan.
“McNally’s differentiated model of bringing family capital to founder-owned businesses made us the right partner for the management team at ITS. Our team’s industry expertise, alongside that of our partners, Coughlin Capital and Phil Rooney, enabled us to accelerate growth for ITS. I’m proud of the strategic initiatives we accomplished during our partnership and the value we created for our investors and ITS shareholders,” stated Ward McNally, Managing Partner and Founder of McNally Capital.
ITS currently employs more than 600 team members across the United States. The Company has grown significantly in recent years, achieving nearly $500 million of revenue in 2020 and recently ranking 35th out of more than 20,000 freight brokers in North America.
Jeff Lynch, Founder and Principal of ITS, stated, “We identified with McNally Capital given their experience, history, and reputation. Having founded and operated ITS Logistics for 15 years before partnering with McNally Capital, the firm and the expertise of their industry partners made them a like-minded investor for us. Importantly, ITS was able to affect meaningful growth under McNally’s ownership, while protecting and even enhancing the Company’s culture and core values.”
McNally Capital invests capital on behalf of the McNally family, who owned and operated Rand McNally & Company, as well as family offices and other like-minded investors. McNally makes thesis-driven investments in the U.S. and looks for businesses where family capital can benefit owners and management teams. The firm targets founder- and management-owned companies and partners in their acquisitions with a bench of Industry Partners, who provide incremental industry and operating knowledge and expertise. The firm is currently investing out of a committed buyout fund.
McNally Capital is focused on combining the best of family capital values with institutional capabilities and sophistication. The firm targets lower middle market businesses with $5 to $30 million in EBITDA in the Aerospace & Defense, Industrial Products & Services, and Business Services industries.
Lincoln International served as the sell-side advisor to ITS Logistics. Ropes & Gray LLP served as legal counsel.
About McNally Capital
McNally Capital is a family-owned private equity firm targeting thesis-driven investments in the U.S., specifically founder and management-owned companies. Formed by the McNally family, who owned and operated Rand McNally & Company, McNally Capital is dedicated to upholding a 140+ year legacy as a family-owned and operated company. We look for businesses where flexible capital can provide a benefit to owners and management teams. Our mission is to harness the financial, intellectual, and human capital of our family office and investor ecosystem to build value for our investors, management teams, and portfolio companies. For more information, please visit www.mcnallycapital.com.