Charlesbank Capital Partners today announced its acquisition of United Road Services (“United Road”) from The Gores Group.
Headquartered in Romulus, Michigan, United Road is the premier provider of vehicle transport and logistics in North America. United Road serves 10,000 customers annually – including OEM suppliers, rental agencies, auctions, web-based logistics firms and individuals – transporting nearly 2 million new, remarketed and specialty vehicles each year.
Kathleen McCann, president and CEO of United Road, will continue to lead the company in the same roles. McCann joined United Road as president in January 2011, succeeding founder and industry leader Michael Wysocki as CEO earlier this year.
Charlesbank views its investment in United Road as an opportunity to leverage the company’s national network and diversified approach to finished vehicle logistics. Using its patented, proprietary technology and established logistics platform, United Road can support vehicle movements across all modes of transportation – road, rail and water.
“We are enthusiastic about our future with this innovative and successful team,” said Jon Biotti, a Charlesbank Managing Director. “The industry is experiencing strong tailwinds as auto sales in all sectors continue to recover, and United Road’s chosen strategies have positioned it well to capture that growth.”
“Charlesbank is a great fit with United Road’s vision of being the supplier of choice for vehicle logistics in North America,” said McCann. “We were in great hands with Gores, and in partnering with Charlesbank, we will be able to continue our market expansion and grow our service offerings. United Road’s deep team of professionals, from our drivers to our technology wizards, is poised to begin a new chapter in this exciting journey.”
The Gores Group acquired United Road in 2007, providing the capital and operational resources necessary to grow the company to nearly $300 million in revenues during one of the greatest automotive downturns in history. “United Road delivered on the investment thesis we developed five years ago. The company is the clear leader in its space and I know that it will continue to succeed under Charlesbank’s ownership and direction,” said Jordan Katz, a Gores Managing Director.
Financial details regarding the transaction were not disclosed. United Road and The Gores Group were represented by Weil, Gotshal & Manges LLP in this transaction and Houlihan Lokey served as their financial advisor. Charlesbank was represented by Goodwin Procter LLP.
ABOUT UNITED ROAD SERVICES, INC.
Founded in 1998, United Road Services, Inc. is the premier finished vehicle logistics company in North America. Each year, coast to coast and across borders, United Road manages the transport of nearly 2 million vehicles. Headquartered in Romulus, Michigan, the company operates an integrated national network, has nearly 1,000 employees and more than 1,200 vehicle carriers.
Customers include all major global vehicle manufacturers, remarketers, financial institutions, car auctions, car dealers, rental companies and on-line sales organizations. Its patented, industry-leading OVISS logistics system provides real time order visibility for customers. United Road was the first in its industry to receive the U.S. Environmental Protection Agency’s Smartway certification for its focus on emerging technologies supporting environmental improvement. For more information, please visit www.unitedroad.com.
ABOUT CHARLESBANK CAPITAL PARTNERS, LLC
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private equity investment firm managing more than $2 billion of capital. Charlesbank focuses on management-led buy-outs and growth capital financings, typically investing $50 to $150 million per transaction in companies with enterprise values of $100 million to $750 million. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantages and excellent prospects for growth. For more information, please visit www.charlesbank.com.
ABOUT THE GORES GROUP, LLC
The Gores Group, LLC is an investment firm focused on acquiring controlling interests in mature and growing businesses, which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, which was founded in 1987 by Alec E. Gores, has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. Headquartered in Los Angeles, The Gores Group maintains offices in Boulder, CO, and London. For more information, please visit www.gores.com.