OAKVILLE, Ont. – The recent sale of fourth-party logistics provider Lakeside Logistics to US heavyweight Transplace, shows there’s a healthy appetite for Canadian transportation and logistics companies.
That’s the opinion of Doug Nix, vice-chairman of Corporate Finance Associates, who orchestrated the auction-style sale on behalf of Lakeside.
“We had a really strong response rate from potential buyers expressing an interest in Lakeside,” Nix said in an interview with Trucknews.com. “I think, in part, because Lakeside had a unique business model where they were not freight brokers, they’ve moved into the 4PL space, bringing significant value added into the supply chain.”
Nix said the auction sale was chosen because a number of suitors had already expressed interest in Lakeside.
“The shareholders concluded, and it’s a strongly held belief I have as well, that when you’re selling a business like that, having multiple bids at the same time is an effective way of deciding what the market really is,” Nix explained. “It shortens timelines and imposes a discipline on the buyers.”
What made Lakeside so attractive to buyers? Nix said it was a combination of an outstanding customer base, a strong management team and a proven ability by Lakeside to entrench itself into its customers’ business operations.
James Menzies is editor of Truck News and Truck West magazines. He has been covering the Canadian trucking industry for more than 15 years and holds a CDL. Reach him at firstname.lastname@example.org or follow him on Twitter at @JamesMenzies. All posts by James Menzies