NEW OWNERS: Consolidated Fastfrate CEO Ron Tepper says the acquisition will help the company achieve further growth.
WOODBRIDGE, Ont. -US private equity firm Fenway Partners has announced it has reached an agreement to acquire Consolidated Fastfrate, Canada Drayage and Koch Transport.
Consolidated Fastfrate is one of Canada’s largest privately-owned transportation and logistics providers with more than 1,500 employees. The company transports more than two billion pounds of freight each year. The company provides LTL and truckload services in Canada and the Northeast and Midwest US.
It also provides national drayage and cartage, warehousing, transloading and third-party logistics services. Consolidated Fastfrate is also Canada’s largest LTL intermodal carrier with a relationship with Canadian Pacific Railway.
The company says it is the only intermodal carrier in North America that has co-located facilities with the railway in every CPR intermodal yard in Canada, with the exception of Edmonton where one is currently slated to be built. The company has 17 terminals in Canada as well as a sales office in Shanghai.
Under the deal, Fastfrate’s shareholders will control 25% of the company.
“Fastfrate is a highly successful and recognized leader in Canadian transportation and logistics and is an excellent addition to Fenway’s growing portfolio of investments in this sector,” said Marc Kramer, managing director of Fenway Partners and co-head of the firm’s transportation and logistics practice. “We are enthusiastic to have (current CEO) Ron (Tepper) and his team join the Fenway family and look forward to providing the necessary resources to capitalize on the wide range of growth opportunities that we perceive in the Canadian transportation market.”
Tepper added “Our company is in the fortunate position of having built one of the largest and most complete service offerings for transportation in Canada. It is very clear to me that there are and will continue to be attractive opportunities for us to grow our business quickly through selective strategic acquisitions. We have the capacity and the knowledge, we have the management team and the desire, and this deal will now give us access to Fenway’s capital, human resources and extensive network in transportation and logistics which will help us reach our goals. These next few years will be a very exciting time for Fastfrate and all of our employees.” •
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