Two regional parcel delivery firms will combine forces and tap into private equity backing to make future acquisitions in the transportation sector, aiming to build a nationwide provider of customized and final mile logistics services, the partners have announced.
Under the plan, Omaha-based Capital Express will join with Tampa-based ADL Delivery in a newly created holding company fueled by cash from Red Dog Equity LLC, an Atlanta-based private equity firm. Red Dog says it has already lined up sufficient equity capital to fund the platform's future acquisitions, thanks to partnerships with Monroe Capital LLC and Tom Pritzker's family business interests (advised by The Pritzker Organization).
Red Dog itself was co-founded by Tom Connolly, who was previously senior vice president of acquisitions at fast-growing XPO Logistics Inc. From its founding in 2011, Greenwich, Connecticut-based XPO was known for its voracious appetite for acquisitions, until its size grew unwieldy and the company in recent months has spun off its contract warehousing, brokered transportation, and intermodal operations.
Today, the newly-established holding company has a network spanning 45 locations in 15 states across the Midwest and Southeast, but that footprint could grow quickly, its executives say.
"We are thrilled with the prospects of combining the Capital Express and ADL Delivery networks and customer bases and view this as the first of many key growth initiatives in developing a leading final mile logistics provider,” Monte O'Hara, the founder of Capital Express and CEO of the new business, said in a release.
Additional leadership includes Thomas Jowers, co-owner of ADL Delivery, as COO, and industry veterans John Benko and Randy Edmonds as president and chief commercial officer, respectively.
"This is a key inflection point for the industry, and we believe there are significant opportunities to leverage best practices, infrastructure, and expertise between ADL and Capital Express, to not only continue to grow within our existing territories, but also expand into new markets,” Jowers said in a statement.
