ATLANTA – June 26, 2008 – RoadLink, the largest private independent intermodal logistics service provider in North America, announced today that it has agreed to acquire CP Ships Trucking Ltd. (C-Truck) from Hapag-Lloyd (Canada) Inc., subject to review by Investment Canada.
Upon closing, RoadLink will launch a new alliance with Fastfrate, a leading Canadian supplier of transportation and logistics services, to operate selected locations and further enhance their combined capabilities for customers across North America. “The acquisition will enhance service capabilities as we deliver single-point-of-contact solutions to complex transportation and warehousing challenges,” commented Chris Munro, RoadLink’s President and Chief Executive Officer.
Headquartered in Montreal, C-Truck was acquired as part of Hapag-Lloyd’s acquisition of CP Ships. Deciding to concentrate on its core business, Hapag-Lloyd made a strategic business decision to divest C-Truck, which has six locations in Canada and the United States and operates approximately 240 trucks, the majority of which are owner-operators. Through their alliance, RoadLink and Fastfrate will offer their customers one-stop, seamlessly integrated and cost-effective comprehensive transportation services throughout North America, including cross border service. Supported by RoadLink’s industry-leading TrueVision technology platform, customers will be able to track their containers from inbound ships through the entire distribution system to the final destination.
According to Munro, RoadLink’s acquisition of C-Truck will provide a key strategic opportunity to launch a new alliance with Fastfrate to further extend the offerings of the RoadLink platform into Canada, while enhancing the overall strength and geographical diversification of RoadLink’s services. “The addition of Fastfrate’s Canadian-based transportation and logistics capabilities to the expanding RoadLink system further underscores our continuing focus on expanding our business capacity and developing leadership across North America,” said Munro. “In working with Fastfrate, we’re reinforcing our commitment to serve Canada, providing our customers with the highest quality intermodal transportation services across the continent.” Munro further stated that, “RoadLink’s
vast United States service platform will become a key strategic service offering for Fastfrate’s customer base.”
Aligning the capabilities of RoadLink and Fastfrate makes sense in light of changing North American business dynamics, according to Fastfrate President and Chief Executive Officer Ron Tepper. “Over the last decade, Fastfrate has created a physical structure across Canada to support the supply chain requirements of some of Canada’s largest shippers. Our network combined with RoadLink’s United States customer-focused infrastructure will create a unique North American transportation structure for both company’s customers. Our new partnership with RoadLink and RoadLink’s acquisition of C-Truck is an exciting event in our company’s history.”
As the manager of investment funds that own both RoadLink and Fastfrate, Fenway Partners was well positioned to support the two entities in realizing a cooperative business potential.
“Hapag-Lloyd’s decision to divest C-Truck presented RoadLink with an opportunity that could not have occurred at a more opportune time as we were looking to increase RoadLink’s Canadian/North American footprint. We saw the acquisition, coupled with our knowledge of both portfolio companies, as a way to generate synergies, driving mutually increased business value,” said Marc Kramer, Managing Director at Fenway Partners. John Anderson, Co-Head of the firm’s Transportation/Logistics practice, added, “Today, success is achieved by focusing on customers and their needs. Teaming the capabilities of RoadLink and Fastfrate with this deal will give customers of both companies significant new options.”
According to Munro and Tepper, a joint customer development and service delivery team is aggressively working on the integration and operating plans for C-Truck along with several other joint business activities.
About Fenway Partners
Fenway Partners, LLC is a middle-market private equity firm with offices in New York and Los Angeles and approximately $1.6 billion of investments and capital under management. Fenway invests in profitable businesses with significant upside potential. Fenway companies typically have leading franchises and operate in two core industry segments: branded consumer products and transportation/logistics. With significant knowledge and success investing in these industries, Fenway has built a strong reputation for its active, involved and engaged approach to supporting its portfolio companies which include sporting goods manufacturer Easton-Bell Sports, school yearbook and class ring manufacturer American Achievement, expedited ground transportation provider Panther Expedited Services, intermodal logistics service provider RoadLink, and Canadian trucking and logistics provider Fastfrate. For further information about Fenway Partners, please visit www.fenwaypartners.com.
About RoadLink
RoadLink is North America’s largest privately held intermodal logistics provider. The company provides customers with a unique combination of value-added services, including capabilities in logistics planning, asset management, intermodal transportation, integrated transportation and distribution solutions, and warehouse/freight handling. RoadLink’s resulting “IntermodaLogistics” solutions enable customers to utilize the company’s more than 60 Service Centers, 50 on-site customer locations, 2,200 vehicles, and more than 5,000 Associates and Independent Contractors to capitalize on market opportunities and solve market challenges. Headquartered in Atlanta, Georgia, RoadLink is owned by a fund managed by Fenway Partners, LLC, a private equity firm based in New York that partners with management to create companies with strong strategic positions and significant opportunities for growth in the Logistics and Consumer sectors. For more information about RoadLink, visit www.roadlink.com.
About Fastfrate
Consolidated Fastfrate (CFF) is one of the largest privately owned providers of transportation and logistic services in Canada, employing more than 2,000 people and transporting more than 2 billion pounds of freight annually. Founded in 1966, CFF has grown into a diversified transportation company whose services include: LTL and truckload from any point to any point within Canada and the northeast and midwest United States, national drayage services, cartage, warehousing, transloading on both the west and east coasts, special operational direct ship program for select retailers, and third-party logistics. CFF has 17 operating terminals across Canada and has been the recipient of numerous awards, including one of Canada’s 50 best managed companies for seven years
running. A fund managed by Fenway Partners and Westerkirk Holdings own a combined 75 percent of the company while CFF management owns 25 percent. For more information about Fastfrate, visit www.fastfrate.com.
About Hapag-Lloyd
Since the acquisition of CP Ships in 2005, the long-established Hamburg shipping line Hapag-Lloyd is one of the world’s five largest container carriers with its fleet of about 135 vessels composing a total capacity of 490,000 TEU. It has more than 8,100 employees and is present with over 320 sales offices in more than 130 countries. In 2007, Hapag-Lloyd achieved sales of €6.2 billion with a global transport volume of approximately 5.5m TEU, nine percent up on the previous year. For more information about Hapag-Lloyd, visit www.hapag-lloyd.com.