Arrow Material Services, LLC a Provider of Transload Services Sold the Majority of its Assets to Precision Terminal Logistics, LLC
Article
CLIENT:
Arrow Material Services, LLC (“Arrow” or the “Company”) based in Sewickley, Pennsylvania, was a provider of transloading services operating over 24 terminals in over 15 states throughout the United States. The Company provides material handling, logistics, transload, secure bulk commodity storage, and facility construction services to customers. The Company also operated EMS Management, LLC (“EMS”) providing environmental cleaning solutions to rail, marine and terminal assets throughout North America, based out of Houston, Texas.
SITUATION:
Arrow Material Services, LLC (“Arrow” or the “Company”) based in Sewickley, Pennsylvania, was a provider of transloading services operating over 24 terminals in over 15 states throughout the United States. The Company provides material handling, logistics, transload, secure bulk commodity storage, and facility construction services to customers. The Company also operated EMS Management, LLC (“EMS”) providing environmental cleaning solutions to rail, marine and terminal assets throughout North America, based out of Houston, Texas.
ENGAGEMENT:
G2 served as the Chief Restructuring Officer of the Company, developing and executing restructuring initiatives as interim management and managing liquidity on a day to day basis. In the summer of 2019, G2 also supported Arrow’s divestiture processes, leading efficient and expeditious transaction execution processes.
OUTCOME:
G2 executed a tailored transaction process resulting in the signing of an asset purchase agreement in August 2019 to Precision Terminal Logistics, LLC (“PTL”), an entity jointly owned and operated by affiliates of Anacostia Rail Holdings Co. and Brown Brothers Harriman Capital Partners. The transaction was successfully completed with PTL acquiring 23 transload facilities in 15 states in September 2019.
G2 also successfully completed a management buyout of EMS in July 2019, and the divestiture of a single facility in Belpre, Ohio to CC Utica, LLC in August 2019.
“The outcomes of the transactions were positive for the Company, employees and customers, resulting in continuity of service for customers and preservation of jobs” said Ben Wright, COO at G2.
About G2 Capital Advisors (www.g2cap.com)
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.
CONTACTS ON THIS DEAL:
Dennis DeBassio, VP, Restructuring: T: 312.952.7494 E: ddebassio@g2cap.com
Zach Talotta, Associate: T: 802.745.9291 E: ztalotta@g2cap.com
Jim Gamache, Senior Advisor: T: 330.338.4938 E: jgamache@g2cap.com
Ben Wright, Chief Operating Officer: T: 415.800.1258 E: bwright@g2cap.com
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