H.I.G. Capital Completes Merger to Create Capstone Logistics
MIAMI – September 16, 2011 – H.I.G. Capital, L.L.C. (“H.I.G.”), a leading global private equity investment firm, today announced the merger of its portfolio company, Progressive Logistics Services, LLC (“PLS”), with LMS Intellibound, Inc. (“LMS”) to create Capstone Logistics, LLC (“Capstone”). Combining two operators that together serve over 60 customers at more than 220 distribution centers across the U.S., the transaction creates the industry leader of productivity-driven workforce solutions for the warehouse, distribution and manufacturing industries.
Capstone offers a wide range of services, from freight handling and supply chain consulting to full management and operation of entire distribution centers. By customizing its services for individual client sites, Capstone’s unique value proposition is to undertake the services that clients find most arduous to perform and cost-effective to outsource.
“The strategic rationale for the combination is highly compelling, particularly for our clients. LMS and PLS share a common set of core values, the most important being our partner-centric focus on enhancing productivity of client supply chains. The deal brings under one umbrella the industry-leading best practices that each organization has pioneered, which will result in Capstone having the most efficient and productive outsourced workforce solution available in the market,” said Steve Taylor, Capstone CEO.
The Capstone executive team is composed of seasoned senior management from both PLS and LMS. Capstone leadership has outlined a robust growth initiative targeting service expansion and new client conversion across several industry sectors. H.I.G. will retain joint control of Capstone.
Jeff Zanarini, Managing Director of H.I.G., added, “When we invested in PLS earlier this year, we believed that the industry was ripe for consolidation and that a company with PLS’ track record of client satisfaction, growth and financial success would inevitably be an active participant in this dynamic marketplace. We are very pleased that we have been able to bring together two outstanding operators to create the industry leader, Capstone, which will offer an even broader suite of value-added client solutions with expertise across industry verticals and coast-to-coast geographic breadth.”
About Progressive Logistics Services
Based in Atlanta, PLS is the national leader in outsourced, productivity-driven workforce solutions for enhancing supply chain efficiency at client distribution centers. With presence at 100+ sites in nearly every state nationwide, PLS provides a broad array of value-added services to some of the largest corporate names in the grocery, food service, retail, and automotive sectors. PLS has distinguished itself through its ability to provide flexible solutions in critical situations. Its large and growing client base benefits from lower throughput costs and the PLS commitment to safety and risk management.
About LMS Intellibound
LMS is a nationwide provider of outsourced warehouse services with a focus on grocery, food service and other retail sectors. The company has been in business since 1986 and is headquartered in Norcross, Georgia. LMS serves over 100+ sites across the U.S. LMS established itself as an industry leader by investing in people, processes, and systems to provide best-in-class service to customers.
For more information, please refer to the Capstone Logistics website at www.capstonelogistics.com.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $8.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, New York, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well-managed service or manufacturing businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.