Situation

Since partnering with Red Arts, Partners Warehouse has doubled in size through organic growth and an add-on acquisition of Flex Logistics, a Southern California-based warehouse company. The Company continues to explore opportunities to bolster its two million square foot warehouse capacity, geographic reach, end market exposure and fulfillment, transloading, drayage, and transportation capabilities. 

Engagement

Partners Warehouse and Red Arts engaged G2 Capital Advisors, LLC (“G2”) as the exclusive buy-side advisor to identify and originate discussions with acquisition targets that meet the Company’s criteria and expansion goals.  G2 quickly leveraged its deep relationships in the value-added warehouse & distribution market to identify and facilitate discussions with targets that align with Partners Warehouse’s acquisition scope.    

Outcome

Partners Warehouse recently acquired Jamesburg, New Jersey-based PSS Distribution Services (“PSS”). Since 1983, PSS has been a trusted third-party logistics (“3PL”) partner serving the U.S. Northeast Corridor. Strategically located in proximity to major northeast seaports, PSS provides warehouse management, transportation, and direct-to-store delivery, as well as value-added services, such as packaging, display assembly, kitting, pick and pack, and e-commerce services.  

“We are excited to expand services into the East Coast through our acquisition of PSS Distribution Services,” said Stefan Freeman, Partners Warehouse CEO. “PSS has developed a robust logistics solutions portfolio that streamline operations for its clients and enhance customer satisfaction. We are honored to integrate these value-add capabilities into our platform.” 

Anthony Barber, Chairman of Partners Warehouse and an Operating Partner at Red Arts, says, “Acquiring PSS is an important strategic milestone for Partners Warehouse as it extends its reach and strengthens its capability in food-grade distribution. We appreciate the G2 team’s continued effort in identifying targets that align with our areas of focus and will help achieve near-term growth and significant long-term shareholder value.”   

Chris Casteleyn, Head of Transportation & Logistics at G2, said, “It’s exciting to see these two groups of operators come together. From early discussions, we felt there was strong overlap in cultural compatibility and a high likelihood that a partnership would make sense.  We look forward to tracking the value of the platform’s enhanced service offering and geographic reach.”