NAPERVILLE, Ill.--(BUSINESS WIRE)--4th Floor Investments, a privately-held holding company of diverse lower middle market business-to-business manufacturing, valued-added warehousing, distribution and niche companies, yielded a 20-fold return on investment when Consolidated Distribution Corporation, LLC (“CDC”) was acquired by Lineage Logistics, LLC ("Lineage") in 2016.
CDC is a leading foodservice valued-added warehousing & distribution company and the largest independent ambient and frozen redistributor in the foodservice industry. CDC provides supply chain solutions for the top national franchisors and the most respected nonperishable food, frozen food, packaging & janitorial supply manufacturers in the United States. CDC moves over 1,800 SKUs per year, redistributing over 16 million cases (over 300,000 pallets) of product from nearly 350 suppliers to over 200 distribution centers throughout North America. Key client accounts for CDC include buying co-ops for Burger King, Yum! Brands Inc., Int'l Dairy Queen, Arby's, Popeyes, Denny's and Focus Brands, among others. The top four 3PL broker partnerships include Coyote Logistics, LLC, J.B. Hunt Transport Services, Inc., Schneider National, C.H. Robinson Worldwide, Inc. and Total Quality Logistics, LLC.
4th Floor Investments originally aligned itself with BrightPath Capital of Carmel, Indiana, Marquette Capital Partners of Minneapolis and other accredited investors to recapitalize CDC in 2008. During the eight-year investment period, the company's dividends grew at an average CAGR of 11.7%. 4th Floor Investments was instrumental as an active investor and helped the company grow market share and improve profitability. “I am extremely proud of CDC’s accomplishments,” said Thomas Geza Varga, president, 4th Floor Investments. “This successful investment opportunity has led to great prosperity for all involved.”
CDC was 4th Floor Investments’ largest portfolio investment to date. CDC was acquired by Lineage on August 16th, 2016. Specific terms of this transaction were not disclosed.
About 4th Floor Investments: 4th Floor Investments, founded in 2002, is a privately held diversified holding company comprised of exemplary business-to-business manufacturing, valued-added warehousing, distribution and niche investments. The Chicagoland firm provides a risk-managed approach to capital appreciation and income-producing strategies. Services provided include investment, intermediary, board level, executive and business consulting solutions. In addition to managing our member companies & investments, we continually target leveraged mergers & acquisitions of lower middle market opportunities. To learn more please visit www.4thFloorGroup.com or call (630) 225-5737.
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