Mergers & Acquisitions
MEI Rigging & Crating, a company based in Stamford, Connecticut, has acquired Pro-Pac International and its affiliate J&J Machinery Transport. The acquisition expands MEI’s operations in the Southeast, where Pro-Pac and J&J have been operating for over two decades. MEI’s CEO, Dan Cappello, stated that the addition of Pro-Pac and J&J brings a wealth of service offerings, industry knowledge, and a strong regional reputation, making them a strategic fit for MEI. Pro-Pac’s services include specialty rigging, transportation, and export crating, catering to various sectors like machine manufacturing, aerospace, and medical industries. J&J offers heavy haul equipment transport and various trucking services. Jim Jones, the long-time co-owner and president of Pro-Pac and J&J, will continue to lead both companies under MEI’s ownership.
Luminus Management, in partnership with private equity firms Lilium Group and Gateway Transport Investments, has acquired Mexico-based logistics company Jaguar Transportation along with its affiliate, Servicios de Transportacion Jaguar SA de CV. Jaguar is a significant player in North American transportation, owning more than 250 trucks and 600 trailers, and specializing in cross-border import and export trade with the U.S. It also operates as an intra-Mexico carrier and an international freight broker. With facilities in Monterrey, Nuevo Laredo, San Luis Potosí, Mexico City, and Guadalajara, Jaguar will continue its operations from its current headquarters in Monterrey under the leadership of its existing management team. The acquisition aims to support Jaguar’s growth and expand its footprint and services in the logistics industry.
ZS Fund, a New York-based private equity fund and majority owner of Transervice Logistics, has acquired Lily Transportation, a dedicated contract carriage company based in Needham, Massachusetts. With this acquisition, ZS Fund expands its trucking and logistics operations, now employing over 2,600 people, including 1,750 drivers, with access to 185 locations across North America. Lily will become an affiliate of Transervice but will maintain its name and management team. Similarly, Transervice will continue operating under its own name. The decision to keep both brands separate allows them to leverage each other’s strengths and resources, creating opportunities for growth and sharing best practices. The combined operations will manage approximately 27,000 pieces of equipment. Lily’s management team, led by John Simourian II as chairman, will largely remain intact under the new ownership.
Redwood Logistics, a Chicago-based supply chain management and logistics services provider, has acquired Rockfarm Supply Chain Solutions, bolstering its cross-border transportation services with international freight forwarding, trade compliance, and customs brokerage capabilities. The acquisition aligns with Redwood’s strategy to expand its 4PL (fourth-party logistics) portfolio of services, including brokerage, dedicated fleet, warehousing and distribution, and supply chain consulting. Redwood had previously made acquisitions of Skipjack, Proactive Global Logistics in 2021, and Eminent Global Logistics in 2019. Rockfarm’s ownership, leadership, management team, and staff were retained, and its Dubuque, Iowa operations center will continue as a Redwood logistics facility. Rockfarm’s co-founder, Todd Colin, is named the chief integration officer at Redwood. This acquisition follows Redwood’s own changes in ownership, with CI Capital Partners acquiring a majority stake in the company in 2018 and later selling it to AEA Investors in December 2021.
SMG Industries (SMGI), a U.S. transportation services company, has acquired Barnhart Transportation’s suite of businesses for $53.3 million. The deal includes $26 million in cash, $24.3 million in stock options, and a $3 million promissory note. The purchased businesses include Barnhart Transportation, Barnhart Fleet Maintenance, Lake Shore Logistics, Lake Shore Global Solutions, Legend Equipment Leasing, and Route 20 Tank Wash. Barnhart has facilities in Pennsylvania, South Carolina, and Texas. The addition of the Barnhart companies is expected to double SMGI’s annual revenues, creating a more diversified mix of services, including truckload, dry bulk, liquids, intermodal, LTL, heavy haul, drayage, transload, and brokerage. Brothers Tim and Bryan Barnhart, who launched Barnhart Transportation in 2003, will take on executive roles at SMGI, with Bryan as CEO and Tim as CFO. The merger is expected to provide cross-selling opportunities and exciting growth prospects for the combined company, with the expertise of the Barnharts contributing to its expansion and success.