Private equity still likes logistics: 4 more deals

Trident, Angeles Equity, LongueVue and Soundcore have made recent deals.

Since the beginning of the pandemic, private equity-backed investments in the supply chain sector have been on the rise, driven by pent-up demand from manufacturers, retailers and other businesses looking for better ways to move their goods domestically or across borders.

Although the pandemic pressure on the supply chain has receded, PE firms are still very much interested in this space.

Harris Williams, a global investment bank specializing in M&A and private capital advisory services, noted in a recent report that expanding cross-border trade activity, growing demand for supply chain technology, ballooning ecommerce volumes and ongoing diversification from single-source suppliers are among factors contributing to the resilience of this sector.

The Harris Williams report noted that, “the increasing complexity of global supply chains, coupled with rising regulatory requirements, provides further opportunities for supply chain technology business across end markets.”

Last year, PE Hub identified multiple supply chain private-equity backed deals that were prompted by onshoring trends. Earlier this year, PE Hub rounded up six PE backed deals. Today we have another set of four recent deals focusing on different aspects of the logistics sector, starting with the latest.

1. TorQuest Partners invests in Brimich Logistics

Toronto-headquartered TorQuest Partners this week invested in Brimich Logistics, a full-service supply chain management and third-party logistics business based in Brantford, Ontario.

Brimich’s existing owners, the Fergus family, will remain significant shareholders in the company.

“Since founding Brimich in 1997, the Fergus family has built an incredibly successful business grounded in a focus on what customers care about – food safety capabilities and responsive service,” said Jonathan Fraser, partner at TorQuest.

“TorQuest looks forward to working alongside existing management to continue expanding Brimich’s capacity and capabilities as a top-tier provider of supply chain management services to customers across Southern Ontario,” added Fraser.

2. Trident invested in Priority Courier Experts

Trident, a New York-based firm, last month invested in Priority Courier Experts, a St. Paul, Minneapolis-based same-day local B2B delivery provider.

Founded in 1996, Priority serves customers in several industries in the Minneapolis-St Paul metropolitan area, including building products, third-party logistics, healthcare, electrical equipment, food and beverage, and automotive.

Trident is partnering with Bluejay Capital, a Key Biscayne, Florida-based firm that invests in transportation and logistics businesses on the deal.

3. LongueVue Capital invests in TTi Logistics

In August, LongueVue Capital, a New Orleans, Louisiana-based firm invested in TTi Logistics, a Jacksonville Beach, Florida-headquartered asset light third-party logistics provider. The firm is partnering with Jeff Rossier, CEO and founder of TTi.

TTi is an asset light third-party logistics business that provides white-glove transportation, storage and installation services for time-sensitive high-value products and retail displays, according to the company.

“TTi’s broad operational capabilities, impressive track record of execution and customer-centric focus make it a leading provider of white-glove transportation services in a number of strategic end markets. We look forward to working with the team to continue its expansion,” said Ray Jeandron, LongueVue’s managing partner.

4. Soundcore Capital exits Custom Goods to Angeles Equity

New York-based Soundcore Capital Partners in late July completed the sale of logistics company Custom Goods to Angeles Equity, a Santa Monica-based company.

Custom Goods has a 175-plus truck fleet and 6.5 million square feet of warehouse space throughout the country.

Sam Heischuber, the managing director at Angeles Equity Partners, said tailwinds in this sector provide opportunities for continued organic growth as well as M&A.

“Recognizing the significant growth potential of third-party logistics businesses, we have been pursuing a diversified asset-light platform that has compelling upside potential,” said Heischuber. “The diversification of Custom Goods’ end markets and customers and distinctive service offerings across transportation and logistics make this an ideal investment for us.”

PE Hub expect to see more deals in the supply chain sector.