Acquisitions will remain an important driver of growth for third-party provider St. George Logistics (STG), according to Konrad Salaber, managing director at Wind Point Partners, the private equity firm that acquired STG in July 2016.
St. George Logistics (STG) has expanded its footprint in the Chicago area through its acquisition of Channel Distribution Corp. (CDC), STG revealed Thursday.
Financial terms of the deal were not disclosed.
STG is an asset-light logistics and transportation services provider headquartered in South Kearny, N.J. The company provides value-added contract services, and specialized warehousing, including container freight management, inventory management, distribution and e-commerce fulfillment, as well as multi-modal ground transportation.
CDC operates out of three facilities near the Chicago O’Hare International Airport. The company provides ocean and air container freight station solutions, centralized examination station services and general order warehousing in the Chicago area. In addition, it provides value-added warehousing, distribution, final mile delivery, and other transportation solutions to its clients.
Commenting on the CDC acquisition, STG Executive Chairman Chris Jamroz said, “CDC more than doubles our footprint in Chicago, expands STG’s services into air cargo, centralized examination station services, general order, and last-mile transportation.”
“In September 2017, we established Chicago as our regional headquarters and announced a multi-million-dollar expansion to our logistics center in Elk Grove Village,” STG President and CEO Hessel Verhage said. “This initiative, intended to expand capacity, improve efficiency, and enhance customer service, is expected to be significantly bolstered by the addition of CDC and its management.”
CDC’s management, headed by Founder Joe Tamari and Partner Alan Muir, will both continue on with the business, and will join STG as shareholders and senior members of STG’s executive management team.
Looking ahead, Wind Point Partners Managing Director Konrad Salaber said, “Consistent with our original value creation plan, acquisitions will remain an important driver of growth for STG, and we continue to evaluate companies active in the asset-light 3PL and transportation sectors.”
Wind Point Partners is the Chicago-based private equity firm that acquired STG in July 2016.
St. George Logistics expands Chicago footprint by acquiring Channel Distribution Corp.
