ITS Logistics Recapitalizes with Strategic Partner
ITS Logistics (ITS), a rapidly growing leading provider of third party logistics and supply chain management services. ITS provides these services to a broad range of name brand and blue chip clients, primarily in the retail, eCommerce, food and beverage, and healthcare industries.
The ITS founding management team was seeking a solution to recapitalize the business and execute its clearly defined growth strategy. Management had identified several organic and acquisition growth opportunities, which build upon the company’s current national platform, diversified service offering and solid customer base.
G2 Capital Advisors was engaged to assist with the analysis of and advise on all potential alternatives for pursuing identified growth opportunities, including traditional lending, debt and private equity markets. Management selected a majority recapitalization solution for their needs. G2 represented ITS Logistics as the exclusive sell-side advisor responsible for running a targeted and high-touch sale process. “G2 Capital Advisors was absolutely a great fit for ITS Logistics and vital in ensuring the process went as smooth as possible while keeping everything on track and on time! Without their expertise and contacts in the financial markets, I doubt we would have found such a perfect partner for ITS. They brought us extreme value through the entire process and positioned and represented the company very well and were a great balance for ITS.” said Jeff Lynch, CEO of ITS Logistics.
The transaction was successfully executed through a sale to McNally Capital: a Chicago-based private equity firm that partners with family offices and high net worth investors to make and manage direct private equity investments, and Coughlin Capital: a family-held private investment group with an emphasis on direct private equity investments in small and middle market companies and substantial experience and expertise in logistics, transportation, international growth, operations and the development of scalable process-driven organizations. The ITS founding management team retained a large ownership percentage, and the partnership will provide strategic and financial expertise to continue to grow.
“We are thrilled with the successful outcome of the transaction for the entire ITS team,” said Ron Lentz, Global Managing Director, Transportation and Logistics Practice for G2 Capital Advisors. “We are very confident in the long term success of the company and their goals.”