CHICAGO--(BUSINESS WIRE)--Wind Point Partners announced today that St. George Logistics (“STG”) has acquired the Extra Express (“Extra”) division of Dicom Transportation Group (“Dicom”). The acquisition allows STG to complement its full array of drayage, warehousing, container freight station (“CFS”), and intermodal transportation capabilities with comprehensive solutions for last mile delivery.
STG is North America’s largest provider of outsourced CFS services and a leading provider of value-added warehousing and distribution services. Dicom is one of the largest providers of regional, expedited ground transportation services in North America. Both companies are majority-owned by Wind Point.
Founded in 1982, the Extra Express division of Dicom provides comprehensive warehousing and related delivery services to blue-chip accounts throughout California. Extra operates four warehouse facilities and maintains access to a network of more than 300 delivery vehicles.
STG plans to leverage Extra’s capabilities to introduce local last mile delivery services across its network, which includes 32 facilities totaling over five million square feet of space. STG will launch last mile delivery services in California in May 2017 and plans to establish last mile services at other port and inland facilities later this year.
Wind Point acquired STG in July 2016 in partnership with logistics executives Chris Jamroz and Hessel Verhage. Extra is STG’s fourth add-on acquisition since Wind Point established the platform ten months ago.
“The last mile delivery segment is a critical component of the import supply chain and our customers spend over $100 million annually on third party transportation providers who visit our facilities, pick up products, and make individual deliveries to the final recipient,” said Jamroz. “The acquisition of Extra will allow us to relieve our customers of a substantial operational burden by offering a closed-loop solution that is faster, cheaper, and more technologically integrated with our other services.”
Konrad Salaber, Principal with Wind Point, commented, “This is an exciting transaction for both STG and Dicom. STG will add last mile as a critical component to its full line of import/export services, which was identified as a core strategic priority at the time of our acquisition of STG. Dicom, meanwhile, has the opportunity to focus its resources on its core footprint, which has emerged as one of the largest regional ground transportation networks in North America.”
Wind Point acquired Dicom in February 2014 when the company operated exclusively in the Canadian provinces of Quebec and Ontario. Through a series of seven acquisitions and a robust organic growth strategy, Dicom expanded its footprint in Eastern Canada and extended its network into the Eastern and Midwestern United States. Dicom now operates one of North America’s largest regional ground transportation networks and generates ~50% of its sales in the eastern half of Canada, ~45% of its sales in the eastern half of the U.S., and ~5% of its sales in California.
Scott Dobak, CEO of Dicom, stated, “Extra is an exceptional business with an impressive track record of growth. However, given Dicom’s success in establishing one of the continent’s leading regional ground networks in the eastern half of North America, Extra’s operations in California have become non-core to our strategy. We are thrilled that the Extra management team will have the opportunity to fulfill its growth ambitions as part of the STG platform.”
Raymond James served as the exclusive financial advisor to STG. Barclays served as the exclusive financial advisor to Dicom. Antares Capital, LStar Capital, and NewStar Financial provided financing for the transaction.
About Wind Point Partners
Wind Point Partners is a private equity investment firm that has raised over $3 billion in commitments since 1984. Wind Point focuses on partnering with top caliber management teams to acquire middle market businesses where it can establish a clear path to value creation. Additional information about Wind Point is available at www.windpointpartners.com.
About St. George Logistics
St. George Logistics offers a wide range of value-added logistics services including ocean and air CFS, contract warehousing, distribution, e-commerce fulfillment and transportation services. St. George operates the largest network of independent CFS facilities in North America with very close proximity to all major ports and metropolitan areas for ocean or air cargo. St. George is also a leading provider of a wide range of additional logistics services including distribution, warehousing and reliable transportation within the U.S. Additional information about St. George is available at www.stgusa.com.
About Dicom Transportation Group
Dicom is an expedited transportation and logistics company headquartered in Montreal with facilities throughout the United States and Canada. Dicom provides overnight transportation, same-day delivery, final mile distribution, and transportation management services for parcel, less-than-truckload and full truckload shipments. Dicom operates one of the largest regional ground transportation systems in North America, managing a network of approximately 2,000 delivery vehicles and 55 facilities. Additional information about Dicom is available at www.dicom.com.
