Tepper Holdings — an investment company controlled by Ron Tepper, the chairman and CEO of the Ontario-based transportation and logistics services provider Fastfrate Holdings — has acquired a majority interest in Fastfrate from Fenway Partners, a middle-market PE firm based in New York. Terms of the deal aren’t being disclosed but Fastfrate’s board has unanimously supported it.
Fastfrate Holdings Inc., a leading provider of transportation and logistics services in Canada, today announced that Tepper Holdings, an investment company controlled by Chairman and Chief Executive Officer Ron Tepper, has acquired a majority interest in Fastfrate Holdings, which wholly controls Consolidated Fastfrate, Canada Drayage and all related trucking and logistics operations, from a fund managed by Fenway Partners. The transaction, which was completed today, was unanimously supported by the Company’s Board of Directors. The terms of the transaction were not disclosed.
As part of the transaction, Fenway Partners will remain a substantial minority investor in Fastfrate and invest additional capital in the business, alongside a significant reinvestment by Mr. Tepper. The new capital commitments will strengthen Fastfrate’s financial position and enable the Company to grow its already strong footprint throughout Canada, further build its existing businesses and develop new businesses in all areas of the Company.
“I am thrilled about today’s announcement and am more energized than ever about Fastfate’s future,” said Mr. Tepper. “Over the course of our 47 year history, we have built one of the most complete service offerings for transportation in Canada. With that as our foundation, Fastfrate is beginning its next phase of growth and development and is now better positioned to take advantage of the many attractive opportunities ahead. Our future is bright and I look forward to continuing to grow and diversify our revenue base, expand our business, deepen our relationships with key customers and provide consistently high-quality transportation services throughout Canada.”
Mr. Tepper continued, “Our partnership with Fenway has played an important role in helping Fastfrate to expand and sharpen our business over the last five years and I am pleased that the Company will continue to benefit from their financial and operational advice and experience going forward. I would like to thank both the Fenway team and our Board of Directors for their steadfast support and confidence in our management team.”
Peter Lamm, Co-Founder and Managing Partner of Fenway Partners, said, “We are pleased to continue our partnership with Ron and his team, and have the utmost confidence in Fastfrate’s future. We look forward to continuing to support the Company as it strives to reach its full potential by expanding and enhancing its services, competitive positioning and geographic footprint.”
Fastfrate will remain headquartered in Woodbridge, Ontario, and maintain its regional offices through Canada. The current management team will continue their present roles at the Company.
Consolidated Fastfrate is one of the largest privately owned providers of transportation and logistics services in Canada, employing more than 2,000 people and transporting more than 2 billion pounds of freight annually. Founded in 1966, CFF has grown into a diversified transportation company whose services include: LTL and truckload from any point to any point within Canada and the northeast and Midwest United States, national drayage services, cartage, warehousing, transloading on both the west and east coasts, special operational direct ship program for select retailers, and third party logistics. CFF has 17 operating terminals across Canada and has been the recipient of numerous awards, including one of Canada’s 50 Best Managed Companies for seven years running, as well as the prestigious Ernst & Young Entrepreneur of the Year Award in B2B. For more information visit www.fastfrate.com.
About Tepper Holdings Inc.
Tepper Holdings is a private holding company owned by Ron and Audrey Tepper. THI has ownership in businesses in manufacturing, temperature-controlled warehousing, strategic Asian sourcing, trucking, real estate, technology and investment banking. For further information about Tepper Holdings Inc., please visit www.tepperholdings.com.
About Fenway Partners
Fenway Partners is a middle market private equity firm based in New York with approximately $1.6 billion under management. With significant knowledge and success investing in the branded consumer product industry, Fenway has built a strong reputation for its hands on approach to supporting portfolio companies. For further information about Fenway Partners, please visit www.fenwaypartners.com.