St. George Logistics, a portfolio company of Wind Point Partners, has acquired Bensenville, Illinois-based Channel Distribution Corp, a provider of ocean and air CFS solutions, centralized examination station services and general order warehousing.
Chicago, IL, December 14, 2017 – St. George Logistics (“STG”), North America’s leading provider of specialty 3PL and transportation services critical to the global supply chain and operating over 30 facilities across the U.S., has expanded its leading position in outsourced import/export services through the acquisition of Channel Distribution Corp. (“CDC”). CDC’s management, led by Founder Joe Tamari and Partner Alan Muir, will both continue with the business and will join STG as shareholders and senior members of its executive management team.
Based in Bensenville, Illinois, CDC is the leading provider of ocean and air CFS solutions, Centralized Examination Station (“CES”) services, and General Order (“GO”) warehousing in the Chicago area. CDC also provides value-added warehousing, distribution, final mile delivery and other transportation solutions to its diverse base of clients. Founded in 1985, CDC operates out of three state-of-the-art facilities strategically located near O’Hare International Airport.
“We welcome Joe Tamari, Alan Muir and the entire CDC team to the STG family as we continue to build our presence in one of the most important logistics markets in North America,” commented Chris Jamroz, Executive Chairman of STG. “CDC more than doubles our footprint in Chicago, expands STG’s services into air cargo, Centralized Examination Station services, General Order, and last mile transportation. Moreover, CDC complements our Chicago team with an experienced, operationally focused group of managers.”
Hessel Verhage, STG’s President and CEO, added, “In September 2017, we established Chicago as our regional headquarters and announced a multi-million dollar expansion to our logistics center in Elk Grove Village. This initiative, intended to expand capacity, improve efficiency, and enhance customer service, is expected to be significantly bolstered by the addition of CDC and its management.”
Joe Tamari, Founder, Co-owner and President, stated, “CDC’s success over the past 30 years is due in large part to our strong customer relationships and passionate focus on customer service. We are confident STG will help CDC enter a new phase of growth without sacrificing any of the core values that have made us successful to date, and that conviction was critical to our decision to partner with Chris, Hessel and the STG team. Alan and I look forward to continuing to lead the CDC operation and to becoming active members of the STG leadership team here in Chicago.”
Konrad Salaber, Managing Director at Wind Point Partners, added “CDC is the fifth add-on acquisition that STG has completed since Wind Point acquired the platform in July 2016. Consistent with our original Value Creation Plan, acquisitions will remain an important driver of growth for STG and we continue to evaluate companies active in the asset-light 3PL and transportation sectors.”
Wind Point is an active investor in transportation, logistics and route-based businesses with previous investments including Dicom Transportation Group, Valicor Environmental, RailWorks Corporation and AIR- Serv Group.
Financing for the transaction was provided by Antares Capital, LStar Capital and Newstar Financial. Kirkland & Ellis represented Wind Point as legal counsel. KPMG provided transaction advisory services on the transaction.
About St. George Logistics
St. George Logistics (STG) is a leading asset-light provider of complex and highly customized logistics and transportation services focused on the global supply chain. The company’s comprehensive suite of services includes value-added contract services and specialized warehousing including container freight management, inventory management, distribution, and e-commerce fulfillment as well as multi-modal ground transportation. With a network of over 30 multi-purpose technology-enabled facilities, 50 partner locations, and numerous transportation partners, STG provides its customers with one of the most expansive import/export solutions in North America. STG is a key partner for third party logistics providers as well as leaders in the food and beverage, pharmaceuticals, consumer electronics, engineered products, home fashion, retail, and other verticals. STG operates U.S. Customs Bonded, TSA certified, and International Free-Trade Zone facilities. For more information, please visit www.stgusa.com.
About Channel Distribution Corp.
Channel Distribution Corp. (CDC) has been serving the needs of the Chicago land transportation community since 1985. The company operates a full service warehouse and distribution center in Bensenville, Illinois, adjacent O’Hare International Airport. CDC handles international import and export ocean cargo, international air import freight, and domestic distribution logistics. Services include cross dock, trans-loading, inventory management, order fulfillment and pick and pack. CDC is a Customs Bonded Warehouse, Centralized Examination Station, Bonded Container Freight Station as well as the only General Order (G.O.) warehouse in the Port of Chicago. For more information, please visit www.channeldc.com.
About Wind Point Partners
Wind Point Partners is a leading Chicago-based private equity investment firm with over $2.3 billion in assets under management. Wind Point focuses on partnering with top caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation. The firm targets investments in the consumer products, industrial products, and business services sectors. Wind Point is currently investing out of Wind Point Partners VIII, a $985 million fund that was initiated in 2016. For more information, please visit www.windpointpartners.com.