Lazard Middle Market Advised ITS
Technologies & Logistics
in its Sale of a Majority Interest to The Carlyle
Group
TRANSACTION
DESCRIPTION
Global private equity
firm The Carlyle Group has acquired a majority interest in ITS
Technologies & Logistics, LLC, an intermodal facilities operator, from
Lanigan Holdings, LLC. Under the terms of the acquisition agreement, the
Lanigan Family will retain a significant minority equity interest.
Carlyle’s investment is made by Carlyle Infrastructure Partners, a $1.14
billion fund that invests primarily in transportation and water
infrastructure projects in the U.S. and Canada, generally ranging from
$100 million to more than $1 billion in enterprise value. Lazard Middle
Market acted as financial advisor to ITS.
ITS is one of the
largest operators of intermodal facilities in North America, where it
lifts containers from rail to truck and truck to rail and performs rail
switching, terminal administration and equipment maintenance. The company
operates in 52 geographically diverse locations in the U.S. and three
locations in Mexico, which are critical components of the movement of
goods in North America. ITS provides a complete range of services to its
railroad customers, emphasizing on-time performance, equipment
availability and safety.
“I am excited about the opportunity that Carlyle’s
investment presents for our customers and employees,” said Tom Stangl,
President of ITS. “Carlyle has an outstanding track record of long-term
investment in assets in the U.S. and around the world. We are confident
that our partnership with Carlyle will enable ITS to grow, ensure its
continued success in providing a first class service to our customers and
maintain a secure and rewarding environment for our employees.”
Jack Lanigan, Jr., representative of the Lanigan
family, said, “We thank the management and employees of ITS for building
the premier U.S. intermodal operator over the past 30 years. Carlyle has
an impressive reputation for creating shareholder value, and we believe
they will help take ITS to the next level as it continues to offer its
customers the great service they’ve come to expect.”
Dave Hallett, a Managing Director with Lazard Middle
Market, said, "We believe that Carlyle Infrastructure Partners, given its
knowledge of the intermodal infrastructure and the opportunities it
presents, will be an excellent partner for ITS management and the
Lanigans."
Robert Dove, Managing Director of Carlyle and Co-Head
of the Infrastructure Team, said, “We are pleased to partner with Tom and
his management team who have on average more than 25 years of rail
experience, and who have demonstrated a track record of consistently
growing the company.”
Barry Gold,
Managing Director of Carlyle and Co-Head of the Infrastructure Team, said,
“We are confident that with ITS’s experienced management team, dedicated
workforce and the continued commitment from the Lanigan family, the
company will continue to grow and build upon its reputation for service
and safety in the intermodal
industry.”
THE SELLER
ITS Technologies &
Logistics, LLC is one of the leading operators of intermodal facilities in
North America, operating at 52 locations in the U.S. and three in Mexico,
and employs over 1,600 people in the U.S and Mexico. The Company is one of
the largest operators of intermodal facilities and performs approximately
five million lifts (or intermodal units) annually. ITS has long standing
customer relationships with all the major North American railroads. It
provides complete turnkey services to its customers including
lift-on/lift-off of containers, equipment maintenance, checkpoint
administration, drayage and switching.
THE BUYER
The Carlyle Group (www.carlyle.com) is a global private
equity firm with $81.1 billion under management committed to 60 funds.
Carlyle invests in buyouts, venture & growth capital, real estate and
leveraged finance in Africa, Asia, Australia, Europe, North America and
South America focusing on aerospace & defense, automotive &
transportation, consumer & retail, energy & power, financial
services, healthcare, industrial, infrastructure, technology &
business services and telecommunications & media. Since 1987, the firm
has invested $43.0 billion of equity in 774 transactions for a total
purchase price of $229.3 billion. The Carlyle Group employs more than
1,000 people in 21 countries. In the aggregate, Carlyle portfolio
companies have more than $87 billion in revenue and employ more than
286,000 people around the world.
ABOUT LAZARD MIDDLE MARKET
Lazard Middle Market
LLC (www.lazardmm.com), a subsidiary of Lazard Ltd (NYSE:LAZ), provides advice on mergers
and acquisitions, restructuring, and financings to the middle market.
Formed in 2007 with Lazard's acquisition of Goldsmith Agio Helms,
Lazard Middle Market has approximately 100 professionals in Minneapolis,
New York, Chicago, Los Angeles, and Charlotte.
