Wind Point Partners Announces Sale of Dicom Canada to General Logistics Systems (GLS), a Division Of Royal Mail
Chicago, IL, September 4, 2018 – Wind Point Partners, a leading Chicago-based private equity firm, announced today that its portfolio company Dicom Transportation Group has sold its Canadian subsidiary (“Dicom Canada”) to General Logistics Systems B.V. (“GLS”), a subsidiary of Royal Mail plc (RMG.L). Total consideration for Dicom Canada was CAD $360 million.
Dicom Canada is a leading regional transportation company providing ground-based parcel, freight and logistics services in Canada with a focus on Ontario and Quebec. Wind Point partnered with CEO Scott Dobak to acquire Dicom Canada in February 2014 from founder and majority-owner Peter Overing, who led the business for over 40 years and positioned the company as one of Canada’s leading providers of expedited transportation services. Upon acquiring the business, Scott and Wind Point implemented a robust value creation plan that significantly expanded Dicom’s scale, diversified its customer base, expanded operating margins, professionalized its infrastructure, and achieved a compound annual EBITDA growth rate of over 15%.
Following the transaction, Wind Point and fellow shareholders will retain their ownership of Dicom Transportation Group’s U.S. subsidiary (“Dicom USA”), which was formed through multiple acquisitions as a sister company to Dicom Canada. Dicom USA generates approximately $150 million in annualized sales and stands as one of the leading providers of expedited final mile and distribution services in the U.S. Scott Dobak will remain with Dicom USA and will continue to lead the business.
Konrad Salaber, Managing Director at Wind Point, commented, “Dicom is a great example of how Wind Point’s focus on partnering with a top caliber CEO and building a world-class management team can drive tremendous value for our investors. The sale of Dicom Canada will deliver an excellent return to our investors and management, and we look forward to working with Scott and the Dicom USA team to build even further on our success to date.”
“Since our initial acquisition we have created significant value at Dicom by investing in the business, nurturing its culture, and executing the aggressive value creation plan that we created with Wind Point at the very launch of the platform,” said Scott Dobak, CEO of Dicom. “Wind Point and our board have always been dedicated partners to me and management, and we continue to value the integrity, guidance, and support they have provided from the outset of our partnership.”
Harris Williams served as exclusive financial advisor to Dicom Transportation Group. Kirkland & Ellis LLP served as legal advisor and KPMG LLP provided transaction advisory services to Dicom.