Navigation Capital’s James Brown Contracting Buys Schrader Trucking

Navigation Capital Partners of Atlanta’s James Brown Contracting Inc. acquired Schrader Trucking Co. Inc., a Jefferson City, Tenn.-based dry van truckload carrier. Schrader has 95 trucks and 201 trailers. It operates in the Southeast as well as in the Midwest, Mid-Atlantic, Texas and Canada.

PRESS RELEASE

Navigation Capital Partners (NCP), an Atlanta-based middle market private equity firm, announced that its portfolio company James Brown Contracting, Inc. (Brown Trucking), a dedicated short-haul truckload carrier, has acquired Schrader Trucking Company, Inc. (Schrader). Schrader, a Jefferson City, Tenn.-based dry van truckload carrier, will become a fully-integrated part of Brown Trucking.

“The Schrader name has a strong reputation in the marketplace for high service quality, making it an excellent fit with Brown Trucking,” said John Richardson, board director of Brown Trucking and managing partner of NCP. “Schrader’s service area supplements Brown’s geographic footprint, and the additional resources will strengthen and enhance the company as we build the leading provider in the Southeast.”

Schrader, with 95 trucks and 201 trailers, operates across the Southeast as well as in the Midwest, Mid-Atlantic, Texas and Canada. The company’s primary commodities are vinyl films, retail, building materials and industrial machinery parts. Current President Phil Schrader will exit the business, while Co-Owner and Vice-President Tom Hodge will remain and act as director of business development.

“Schrader and Brown Trucking share the same values of safety and dedicated customer service,” said Brian Kinsey, CEO of Brown Trucking. “Combining forces enables us to diversify our service offerings and increase our market density while continuing to provide outstanding service to our customers.”

“The employees and drivers of both companies will benefit from this affiliation,” said Hodge. “Our similar cultures will be an advantage as we move forward and continue to focus on aggressive growth.”

Wells Fargo Bank, N.A., acted as the primary lender for the transaction with Hancock Capital Management providing additional financing. Barnes and Thornburg LLP acted as legal advisor.

“Identifying the right strategic acquisition opportunities is a key part of our growth strategy for Brown Trucking,” said David Panton, board director of Brown Trucking and NCP partner. “Schrader’s a well-respected company, and there’s a synergy with Brown on multiple levels. We are confident this move will make Brown Trucking a stronger player.”

Brown Trucking was acquired by NCP in 2008. Since 2009, NCP has acquired four new platform investments, and six add-on acquisitions have been completed across its portfolio.

About Navigation Capital Partners
Navigation Capital Partners (NCP) is an Atlanta-based private equity firm making control growth and buyout investments in lower middle market companies. The managers of NCP formerly founded and managed Mellon Ventures, the private equity investment partnership of Mellon Financial Corporation. With the backing of Goldman Sachs Private Equity Opportunities Fund LP, NCP acquired the private equity portfolio of Mellon Ventures in December 2006. NCP currently manages approximately $277 million of invested and committed capital. For more information, visit www.NavigationCapital.com.
About James Brown Contracting, Inc.
Lithonia, Ga.-based James Brown Contracting, Inc. (Brown Trucking) is a leading Southeast regional dedicated truckload carrier, and has been in business for more than 40 years. Brown Trucking is focused on the middle of the supply chain of our customer base, where time-sensitive delivery and information services are critical to our customers. We specialize in service to the paper and packaging, major appliances, consumer packaged goods and building materials industries. Also known as James Brown Trucking Co., the company operates 11 terminals in the Southeast and Mid-South region with 600 trucks and more than 3,000 trailers. For more information, visit www.BrownTrucking.com.
About Schrader Trucking Company, Inc.
Schrader Trucking Company, Inc. (Schrader) was established in 1960 and is based in Jefferson City, Tenn. Schrader operates across the Southeast as well as in the Midwest, Mid-Atlantic, Texas and Canada with 95 trucks and 201 trailers. The company’s primary commodities are vinyl films, retail, building materials and industrial machinery parts. For more information, visit www.SchraderLogistics.com.