CHICAGO, Illinois – A Montreal-based LTL company has a new American backer.
Private equity investment firm Wind Point Partners announced it has made investment in Dicom Transportation Group. The amount of the investment was not disclosed, however it was significant enough to warrant changes to Dicom’s management.
Scott Dobak, who partnered with Wind Point on the investment, will become CEO. Dobak has been working in the industry for nearly 30 years and was most recently president of RoadRunner Transportation’s LTL and TMS divisions.
“I feel fortunate to have the opportunity to join and lead such a strong organization and I am very excited to once again manage a business in Quebec. I look forward to working with everyone on the Dicom team to execute the growth opportunities we’ve identified and to continue to provide Dicom’s tens of thousands of customers with excellent service and value,” said Dobak.
Dicom’s co-founder and current CEO Peter Overing is retiring. In a statement, Wind Point, said other management members, including president Pierre Poliquin, “will remain with the business and will continue to maintain a significant ownership stake in Dicom,” although Wind Point did arrange for a number of new people to added to the board of directors. They are Rick McClelland (former CEO of Dynamex) who will serve as chair of the board, Joe Lawler (former CEO of ModusLink Global Solutions) and Tom Schmitt (former CEO of Purolator).
Along with LTL services, Dicom offers small parcel courier and truckload transportation services as well as logistics and transportation management solutions. The company’s brands include Dicom Express, GoJiT and JiT24.7. The business model made it a logical target for Wind Point, which describes its acquisition model as “acquiring courier, LTL and TMS providers in Quebec, Ontario and the United States.” It is also interested in purchasing “third party logistics (3PL) providers who manage transportation, logistics and supply chain functions for businesses in Canada and the United States. Acquisition targets will also include carriers and 3PL providers who manage and facilitate cross border trade among Canada, the United States and Mexico.”