Dicom Transportation Group Acquires Eastern Connection

CHICAGO, IL, September 9, 2015 – Wind Point Partners (“Wind Point”) announced today that portfolio company Dicom Transportation Group, a leading provider of business-to-business (“B2B”) expedited transportation services based in Montreal, QC, has expanded its industry-leading regional overnight parcel network into the Northeast United States through the acquisition of Eastern Connection.

Eastern Connection (“EC”), an asset-light provider of B2B pickup and delivery services, is the largest regional parcel delivery company serving the Northeast United States. EC provides expedited delivery services to more than 5,000 cities and 6,800 zip codes stretching from Maine to Virginia to Ohio. Leveraging a large and efficient network that includes 19 terminals and cross dock facilities, EC is the only regional parcel carrier able to guarantee overnight ground delivery throughout this geography. Founded in 1983 by Jim Berluti and Ted Kauffman, EC is one of the largest and most respected expedited parcel carriers in the U.S. EC will be aligned with the Express division of Dicom Transportation Group.

Wind Point acquired Dicom in February 2014 in partnership with Scott Dobak, who joined as CEO. Prior to joining Dicom, Scott served as President of RoadRunner Transportation’s LTL and TMS segments, representing a $775 million P&L.

“Combining Eastern Connection into Dicom creates one of the largest parcel networks serving this part of North America,” said Dobak. “No carrier will have a faster, more reliable overnight ground transportation network offering regional and cross-border services to so many points in the Northeastern U.S. and Eastern Canada.”

Konrad Salaber, a principal at Wind Point, added, “With sales expected to reach almost C$400 million by the end of 2015, Dicom operates a leading B2B logistics platform built on fast, reliable and cost-effective ground transportation. EC’s service geography is perfectly congruent to Dicom’s, and this combined super-regional network will provide customers with unparalleled regional and cross-border services.”

Dicom’s acquisition program focuses on acquiring courier, LTL and transportation providers in Quebec, Ontario and the United States. In addition, Dicom is seeking 3PL providers who manage transportation, logistics and supply chain functions for businesses in Canada, the U.S. and Mexico.

Kirkland & Ellis LLP served as legal advisor and KPMG LLP acted as transaction advisor to Wind Point and Dicom.