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FENWAY PARTNERS ACQUIRES CONSOLIDATED FASTFRATE INC. Extends Transportation and Logistics Practice into Canada
Fastfrate is one of the largest privately owned providers of transportation and logistics in Canada, employing more than 1,500 people and transporting more than 2 billion pounds of freight annually. Founded in 1966, Fastfrate has grown into a diversified transportation company with a menu of services including LTL and truckload from any point to any point within Canada and the Northeast and Midwest United States, national drayage and cartage, warehousing, transloading on both the east coast and the west coast, special operational direct ship programs for retailers, third party logistics, and is the largest LTL intermodal carrier in Canada with a unique and 40 year relationship with Canadian Pacific Railway (“CPR”). Fastfrate is the only intermodal carrier in North America to have co-located facilities with the railway in every CPR intermodal yard in Canada with the exception of Edmonton, and that will be built shortly. Combined, Fastfrate has 17 operating terminals across Canada and a sales office in Shanghai, and currently handles in excess of 25,000 marine containers a year coming from China, and growing at a 20% rate. (“CPR”).
As part of
the transaction, Fastfrate’s existing shareholders, including
President and Chief Executive Officer Ron Tepper and other members
of senior management, will have a 25% ownership stake in the
Company. Westerkirk Capital, a manager of private capital for a
Canadian investor, will also own a minority interest.(“CPR”).
Fastfrate
is a highly successful and recognized leader in Canadian
transportation and logistics and is an excellent addition to
Fenway’s growing portfolio of investments in this sector,” said Marc
Kramer, Managing Director of Fenway Partners and co-head of the
firm’s Transportation/Logistics practice. “We are enthusiastic to
have Ron and his team join the Fenway family and look forward to
providing the necessary resources to capitalize on the wide range of
growth opportunities that we perceive in the Canadian transportation
market.(“CPR”).
John Q.
Anderson, co-head of Fenway’s Transportation/Logistics practice and
part of Fenway Partner’s Resources, added, “Fastfrate is an
exceptional business with a strong management team and solid
operating platform that has been named one of Canada’s 50 Best
Managed Companies for the last six consecutive years. Adding
Fenway’s capital and business-building capabilities into the mix
will allow Fastfrate to continue to grow organically and through
acquisitions, further solidifying its position as a leading Canadian
transportation and logistics company.(“CPR”).
Ron Tepper,
President and Chief Executive Officer, commented, “Our Company is in
the fortunate position of having built one of the largest and most
complete service offerings for transportation in Canada. It is very
clear to me that there are and will continue to be attractive
opportunities for us to grow our business quickly through selective
strategic acquisitions. We have the capacity and the knowledge, we
have the management team and the desire, and this deal will now give
us access to Fenway’s capital, human resources and extensive network
in transportation and logistics which will help us reach our goals.
These next few years will be a very exciting time for Fastfrate and
all of our employees.(“CPR”).
The
transaction, which is expected to close by year end, is subject to
Canadian regulatory approval under the Investment Canada Act.(“CPR”).
Ropes & Gray
LLP acted as legal counsel to Fenway. Ernst & Young and Loopstra
Nixon LLP served as Fastfrate’s financial and legal advisors,
respectively.” About Fenway Partners
Fenway Partners, Inc. is a middle market private
equity firm with offices in New York and Los Angeles and
approximately $2.0 billion under management. Fenway invests in
profitable businesses with significant upside potential. Fenway
companies typically have leading franchises and operate in two core
industry segments, branded consumer products and
transportation/logistics. With significant knowledge and success
investing in these industries, Fenway has built a strong reputation
for its hands-on approach to supporting its portfolio companies
which include sporting goods manufacturer Easton Bell Sports, school
yearbook and class ring manufacturer American Achievement,
transportation and logistics provider Greatwide Logistics, expedited
ground transportation provider Panther Expedited Services and
intermodal logistics service provider RoadLink USA.(“CPR”).
For further information
about Fenway Partners, please visit
www.fenwaypartners.com.(“CPR”).
For further information
about Fastfrate Inc., please visit
www.fastfrate.com. Contact: Brooke Morganstein/Anna Cordasco |
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