December 14, 2017
St. George Logistics Acquires Channel Distribution Corp
Leading logistics provider expands footprint in Chicagoland
Chicago, IL, December 14,2017 - St. George Logistics (“STG”), North America’s leading
provider of specialty 3PL and transportation services critical to the global
supply chain and operating over 30 facilities across the U.S., has expanded its
leading position in outsourced import/export services through the acquisition
of Channel Distribution Corp. (“CDC”).
CDC’s management, led by Founder Joe Tamari and Partner Alan Muir, will
both continue with the business and will join STG as shareholders and senior
members of its executive management team.
Based in Bensenville, Illinois, CDC is the leading
provider of ocean and air CFS solutions, Centralized Examination Station (“CES”) services,
and General Order (“GO”) warehousing in the Chicago area. CDC also provides
value-added warehousing, distribution, final mile delivery and other
transportation solutions to its diverse base of clients. Founded in 1985, CDC
operates out of three state-of-the-art facilities strategically located near
O’Hare International Airport.
“We welcome Joe Tamari, Alan Muir and the entire CDC team to the STG family as we continue to build our presence in one of the most important logistics markets in North America,” commented Chris Jamroz, Executive Chairman of STG. “CDC more than doubles our footprint in Chicago, expands STG’s services into air cargo, Centralized Examination Station services, General Order, and last mile transportation. Moreover, CDC complements our Chicago team with an experienced, operationally focused group of managers."
CDC is the fifth add-on acquisition that STG has completed since Wind Point acquired the platform in July 2016. Consistent with our original Value Creation Plan, acquisitions will remain an important driver of growth for STG and we continue to evaluate companies active in the asset-light 3PL and transportation sectors.
Konrad Salaber, Managing Director
Hessel
Verhage, STG’s President and CEO, added, “In September 2017, we
established Chicago as our regional headquarters and announced a multi-million
dollar expansion to our logistics center in Elk Grove Village. This initiative,
intended to expand capacity, improve efficiency, and enhance customer service,
is expected to be significantly bolstered by the addition of CDC and its
management.”
Joe Tamari, Founder, Co-owner and President, stated,
“CDC’s
success over the past 30 years is due in large part to our strong customer
relationships and passionate focus on customer service. We are confident STG
will help CDC enter a new phase of growth without sacrificing any of the core
values that have made us successful to date, and that conviction was critical
to our decision to partner with Chris, Hessel and the STG team. Alan and I look forward to continuing to lead
the CDC operation and to becoming active members of the STG leadership team
here in Chicago.”
Konrad Salaber, Managing Director at Wind Point Partners, added “CDC
is the fifth add-on acquisition that STG has completed since Wind Point
acquired the platform in July 2016.
Consistent with our original Value Creation Plan, acquisitions will
remain an important driver of growth for STG and we continue to evaluate
companies active in the asset-light 3PL and transportation sectors.”
Wind Point is an active investor in transportation, logistics and
route-based businesses with previous investments including Dicom Transportation
Group, Valicor Environmental, RailWorks Corporation and AIR- serv Group.
Financing for the transaction was provided by Antares Capital, LStar
Capital and Newstar Financial. Kirkland & Ellis represented Wind Point as
legal counsel. KPMG provided transaction advisory services on the transaction.