GHK Capital Acquires ITS Logistics

GHK Capital Partners has acquired third-party logistics company ITS Logistics from McNally Capital.

ITS Logistics provides supply chain management, transportation, warehousing, and logistic services to small and large-scale businesses. The company, with 600 employees, had nearly $500 million in revenue in 2020 and operates a 2-million square foot warehouse in Sparks, Nevada. ITS was founded in 1999 by Jeff Lynch, Darryl Bader, and Dan Allen and today is led by CEO Scott Pruneau.

“This exciting new strategic alliance with GHK will strengthen our ability to provide top-tier logistics solutions for our stakeholders through expansion of our services and physical footprint across North America,” said Mr. Pruneau. “We believe that our great momentum combined with GHK’s strategic business acumen, financial expertise, and aligned culture will allow us to double-down on our growth and aggressively invest in our people, technology, physical assets and geographic expansion.”

McNally Capital partnered with Coughlin Capital and Mr. Lynch, Mr. Bader and Mr. Allen to acquire ITS in February 2015. The two firms also brought in Phil Rooney, former CEO of Waste Management and former president of Service Master, as a board member of ITS.

“McNally’s differentiated model of bringing family capital to founder-owned businesses made us the right partner for the management team at ITS,” said Ward McNally, the managing partner and founder of McNally Capital. “Our team’s industry expertise, alongside that of our partners, Coughlin Capital and Phil Rooney, enabled us to accelerate growth for ITS. I’m proud of the strategic initiatives we accomplished during our partnership and the value we created for our investors and ITS shareholders.”

“We are excited about our new partnership with ITS, anchored by an exceptional leadership team that has pioneered a disruptive and unique approach to asset lite network transportation, middle mile logistics, omnichannel fulfillment, and beyond,” said Gil Klemann, the managing partner of GHK. “We are committed to investing in the company to fuel continued growth and superior, solutions-based customer service.”

Greenwich, Connecticut-based GHK invests in companies with $15 million to $40 million of EBITDA that are active in the manufacturing, building products and services, business services, distribution and logistics, packaging, and general industrial sectors.

Chicago-headquartered McNally Capital is a family office that invests from $15 million to $75 million of equity in companies that have from $5 million to $30 million of EBITDA. Sectors of interest include aerospace and defense, industrial products and services, or business services.

Coughlin Capital is a family-held private investment group with an emphasis on direct investments in small and middle-market companies that have revenues from $2 million to $80 million and EBITDA from $1 million to $15 million. San Rafael, California-based Coughlin specializes in the logistics and transportation services sector.

Senior financing for the transaction was provided by Goldman Sachs Asset Management and Churchill Asset Management.

Lincoln International was the financial advisor to ITS Logistics and Stephens was the advisor to GHK.

© 2021 Private Equity Professional | July 1, 2021