CHICAGO & PHOENIX--(BUSINESS WIRE)--Red Arts Capital, LLC (“Red Arts”), a leading middle-market, sector-focused private equity investment firm and preferred investment partner for family-owned supply chain-related businesses, announced today the sale of RAC MME Holdings, LLC to Knight-Swift Transportation Holdings, Inc. for $150 million in cash. RAC MME Holdings, LLC (“MME” or the “Company”) is the parent company of wholly-owned subsidiaries Midwest Motor Express, Inc. (www.mmeinc.com) and Midnite Express, Inc. (www.midnitexpress.com).
Founded over 100 years ago, MME provides less-than-truckload ("LTL"), full truckload, and specialized and international logistics transportation services to a diverse customer base in its service territory in the upper midwestern and great northwestern regions of the United States. MME’s regional footprint complements Knight-Swift’s current southeastern and midwestern LTL presence, and this transaction is a significant step towards Knight-Swift’s goal of building a nationwide LTL footprint.
“Less-Than-Truckload is an integral part of our nation’s supply chain, and we had deep conviction in the industry’s tailwinds supporting this segment of logistics transportation,” said Nicholas Antoine, Co-Founder and a Managing Partner at Red Arts Capital. “With MME, we found the ideal opportunity to invest in an excellent business with an extensive network, including most metropolitan areas across its network geographic footprint. We are proud of our contributions to the Company’s over 100 years of growth and service to the region, and believe that Knight-Swift provides MME the ideal home for its next phase of growth.”
Red Arts Capital partnered with Prudential Capital Partners, Brightwood Capital Advisors, LLC and several family offices in 2019 to acquire MME, Inc. from the Roswick and Greenstein families, who founded the Company in North Dakota in 1918. Legacy family ownership moved outside to elect Marlin Kling to his current leadership role as President in 2006, and he remained in his role after the Red Arts-led acquisition. “The Red Arts team has been an invaluable business and investment partner, and we would like to thank them for their expertise, support and hands-on approach over the past several years,” said Mr. Kling. “Their deep industry knowledge has been indispensable to the Company. Not only did the Red Arts team help the Company grow through a challenging operating environment, but they also worked tirelessly to find the right new partner for us in Knight-Swift.”
“It has been a privilege to partner with the MME team over the past several years to execute a successful growth strategy and steward this amazing 100-year-old business through a transition from multi-generational family ownership,” said Chad Strader, Co-Founder and a Managing Partner at Red Arts Capital. “We would like to thank President Marlin Kling and the entire MME team for their incredible hard work and efforts and look forward to their continued success.”
Stifel Investment Banking and Greenberg Traurig, LLP served as advisors for Red Arts Capital. Scudder Law Firm represented Knight-Swift Transportation in the transaction.
About Red Arts Capital
Based in Chicago, Illinois, Red Arts Capital is a leading investment firm focused on supply chain-related, transportation and logistics businesses. Red Arts Capital seeks to partner with and invest in privately-owned, primarily family-owned, and multi-generational businesses with solid business fundamentals and a strong track record and reputation. With sector expertise and a commitment to stewardship and excellence, Red Arts Capital’s approach earns the firm a trusted seat at the table with portfolio companies, investors and partners. For more information, please visit: www.redartscapital.com.