Chicago private equity firm buys another 3PL

Chicago personal fairness agency buys one other 3PL

The Chicago personal fairness agency Crimson Arts Capital is again on the takeover path within the provide chain sector, saying at present that it has acquired Flex Logistics, a privately-owned third celebration logistics (3PL) supplier in Southern California.

As not too long ago as June, Crimson Arts had additionally acquired the contract packaging companies supplier Coregistics. And in 2021, it offered the lower than truckload (LTL) transportation corporations Midwest Motor Categorical Inc. and Midnite Categorical Inc. (MME) for $150 million to truckload service Knight-Swift Transportation Holdings Inc.

Phrases of its newest deal weren’t disclosed, however the agency stated that it had accomplished the transfer via one other of its portfolio corporations, Companions Warehouse, a 3PL with operations in warehousing, value-added companies, and transportation.

Eastvale, California-based Flex holds practically 900,000 sq. ft of warehousing area and companies prospects in the buyer merchandise, meals and beverage, spirits, and automotive industries.

In keeping with Crimson Arts co-founder, co-CEO, and managing companion Nick Antoine, the agency sees rising demand for warehousing companies on account of a pointy lack of actual property capability within the industrial sector and rising client demand for merchandise. On the similar time, e-commerce consumers are placing stress on retailers to supply next-day or same-day supply, which is leveraging a change from huge warehouses situated in rural areas to smaller properties nearer to city populations, permitting sooner last-mile supply routes.

“As e-commerce turns into an even bigger a part of how we devour merchandise and handle stock, we’re seeing a shift to regionalization. Corporations want amenities with nearer proximity to distribution and transportation networks,” Antoine stated.

Logistics websites situated nearer to massive cities may have higher entry to scarce labor swimming pools, which is a serious problem within the provide chain space, he stated. However Antoine stated that average and small sized companies—together with Coregistics and Flex—are sometimes higher at retaining these useful workers than massive companies. That’s as a result of they’re in a position to work extra intently with workers, keep away from tough working situations, and provide a supportive office tradition.

Following the acquisition, Flex will proceed to function independently of Crimson Arts’ different portfolio corporations because it takes benefit of financial “tail winds,” he stated. “As covid has confirmed us, the material of our lives is predicated upon the availability chain. When all the pieces shut down, we nonetheless wanted issues delivered and stock managed,” Antoine stated.



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