Daniel P. Bearth |
The Carlyle Group has acquired vehicle hauler United Road Services from Charlesbank Capital Partners, the companies announced Sept. 5.
Terms of the transaction were not disclosed.
“The Carlyle Group’s global reach and expertise coupled with its reputation for helping companies thrive make it an exceptional investor partner,” said Kathleen McCann, chairman and CEO of United Road Services in Romulus, Mich. “We expect the Carlyle team will help us accelerate our disciplined growth and further enhance our ability to serve our customers.”
Current management of the company will remain in place, officials said, with McCann as CEO and Mark Anderson as president and chief operating officer and Mary Petrovich, an operating executive at Carlyle and chairwoman of AxleTech International Holdings, joining United Road’s board of directors.
United Road ranks No. 56 on the Transport Topics Top 100 list of largest for-hire carriers in North America with revenue of $525 million in 2016. The company hauls more than 3 million new and used vehicles annually for manufacturers, retailers, finance and leasing companies, rental agencies, auctions, web-based logistics firms and individuals.
McCann said the company is on track to move more than 3.5 million vehicles in 2017, compared with 1.5 million in 2012.
“Our strategic growth platform was really turbocharged in late 2012 when we were acquired by Charlesbank,” McCann said in a statement Sept. 5. “They provided the capital, support and encouragement to expand our reach and capabilities — both organically and through the acquisition of a major competitor, which gave us a deeper presence in the Southeast and Southwest U.S.”
Vehicle haulers have been riding a wave of strong new car and truck sales in recent years, although not all carriers have been able to cash in on the trend as automakers continue to pressure suppliers for cost savings.
Most notably, Jack Cooper Holdings Corp., the largest vehicle hauler in North America, saw its share of the market for transporting new vehicles decline with the loss of business from Nissan. The company recently negotiated a deal to exchange $429.2 million in outstanding debt for stock to shore up its finances and avoid bankruptcy.
Jack Cooper Transport reported revenue of $667.8 million in 2016, a decline of 8.3% from the year before. Another major vehicle hauler, Cassens Transport, also reported a 2.9% drop in revenue last year to $317.6 million from $327.2 million in 2015.
United Road’s Anderson said the company’s goal “is to be the supplier and employers of choice in the finished vehicle logistics industry. We want passionate, hard-working and smart people on our team. We work hard to ensure our customers trust United Road to move their cars safely, on-time and damage-free. This combination of talent and trust is what drives United Road’s success.”
Adam Glucksman, managing director at Carlyle Group, said Carlyle’s “deep transportation experience and network . . . will contribute meaningfully to United Road’s growth trajectory.”
Michael Choe, managing director and CEO of Charlesbank, also commented on United Road’s capabilities and potential for more growth.
“We have enjoyed working with Kathleen, Mark and the rest of the team to execute on key elements of our investment thesis, including implementing its national remarketing strategy, accelerating asset-light revenue growth and maximizing its technology platform to improve route efficiency,” Choe said. “We believe the company has both the people and the structure to support ongoing growth under new ownership.”