Private equity firm The Jordan Co. is continuing to throw its weight around in the logistics sector, announcing yesterday that it has agreed to sell a majority stake in Capstone Logistics LLC to H.I.G. Capital, the Miami-based private equity firm that had previously owned Capstone from 2011 to 2014.
Terms of the deal were not disclosed, but The Jordan Co. also said it will make a new investment in the business and continue to hold a minority ownership stake. New York-based Jordan also said that Capstone's existing management team, led by CEO Steve Taylor, will continue to lead the company and remain as shareholders in the business.
The transaction is expected to close in November, subject to customary closing conditions and completion of review under antitrust laws.
Peachtree Corners, Georgia-based Capstone is a third-party logistics provider (3PL) catering primarily to the grocery, food service, retail, and consumer packaged goods (CPG) industries. It has grown its national footprint over the past several years and expanded its service offerings from predominantly inbound logistics to include other inside-the-warehouse services, plus integrated freight brokerage, last-mile, reverse logistics, and payments services, Taylor said in a release.
For example, the company said Tuesday that courier and last mile delivery provider Priority Express will now rebrand itself as Capstone Logistics—following its 2019 acquisition by Capstone—and serve as the company’s last mile fulfillment solution. “Integration with Capstone’s warehousing and transportation divisions enables us to rapidly expand our services and geographic footprint,” former Priority Express chief Jon Rydel, now president of Capstone’s last mile division, said in a release. "Looking ahead, our focus is on leveraging this interconnected entity and our operational expertise to accelerate growth within the last mile sector.”
The Jordan Co.’s move may show that merger and acquisition activity in the 3PL sector could be showing signs of life again, after slowing nearly to a halt during the coronavirus pandemic. In fact, many of the firms involved in the Capstone deal were big players in those recent buyouts.
For example, Capstone’s own new owner is clearly no stranger to the supply chain sector. In addition to having owned Capstone itself in the past, H.I.G. last year acquired another 3PL, Cardinal Logistics Management Corp. The deal also marks the latest step by The Jordan Co. to position itself within the logistics sector, following its 2018 acquisitions of freight brokerage Load Delivered Logistics, logistics IT provider Logistical Labs, and broker GlobalTranz Enterprises. Just a year later, Jordan sold GlobalTranz back to its previous owner, Providence Equity Partners LLC.
