Skip to content
Search AI Powered

Latest Stories

newsworthy

Private equity firm acquires Cardinal Logistics to invest in freight market

H.I.G. Capital says locking in dedicated transportation capacity has taken on "mission-critical" importance for complex supply chains.

Third-party logistics provider (3PL) Cardinal Logistics Management Corp. has been acquired by the Miami-based private equity firm H.I.G. Capital in a move to expand Cardinal's dedicated trucking offering in a tight freight market, the companies said today.

Terms of the deal were not disclosed. Cardinal had previously been owned by Centerbridge Partners L.P., a New York-based private investment management firm.


Founded in 1997, Concord, N.C.-based Cardinal provides fully outsourced transportation and logistics services. The company's dedicated contract carriage offerings allow customers to lock in dedicated fleets and drivers, servicing complex route structures with scheduled pick-ups and deliveries across distribution centers, suppliers, and stores, Cardinal said.

The investment comes as the freight market has backed off its historically tight conditions of 2018, but remains stubbornly higher than usual, pushing retailers to seek new options for controlling their rising transportation costs.

"We believe Cardinal represents a compelling opportunity to invest in transportation and logistics, especially as supply chains become more complex and locking in reliable, dedicated capacity takes on mission-critical importance," H.I.G. Managing Director Richard Stokes said in a release. "As customers continue to outsource their transportation and logistics needs, we expect Cardinal to become an increasingly important strategic partner."

Cardinal executives said they expect to leverage the new ownership in a new phase of growth and expansion in the sector. "We are excited about Cardinal's growth prospects and believe our clients and employees will benefit immensely from H.I.G.'s support as we embark on our next growth phase," Cardinal CEO Tom Hostetler said in a release.

According to the investment bank Harris Williams, which represented Cardinal in the deal, its new owner has a record of investing in the companies it acquires. "We are excited for the new partnership between Cardinal and H.I.G.," Jeff Kidd, a director at Harris Williams, said in a release. "H.I.G. is an excellent go-forward strategic partner for Cardinal and will be able to help the company capitalize on numerous growth opportunities."

The Latest

More Stories

legal scales and gavel

FMCSA rule would require greater broker transparency

A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.

According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.

Keep ReadingShow less

Featured

chart of trucking conditions

FTR: Trucking sector outlook is bright for a two-year horizon

The trucking freight market is still on course to rebound from a two-year recession despite stumbling in September, according to the latest assessment by transportation industry analysis group FTR.

Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.

Keep ReadingShow less
chart of robot use in factories by country

Global robot density in factories has doubled in 7 years

Global robot density in factories has doubled in seven years, according to the “World Robotics 2024 report,” presented by the International Federation of Robotics (IFR).

Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.

Keep ReadingShow less
person using AI at a laptop

Gartner: GenAI set to impact procurement processes

Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.

Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.

Keep ReadingShow less
Report: SMEs hopeful ahead of holiday peak

Report: SMEs hopeful ahead of holiday peak

Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.

That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.

Keep ReadingShow less