Transportation Sector Breakdown and More!
Happy Friday! Before we get into this week’s lower middle market activity, we wanted to point out a report that Bridgepoint Investment Banking released on demand and M&A in the transportation sector. Here are some of the highlights from the report:
Trucking will continue to be a dominant industry with freight tonnage expected to grow more than 25% to 20.6bn by 2030
The transportation industry continues to rise due to a lift in the industrial economy, strong housing demand, continued inventory restocking, and a release of pent–up consumer demand
The bullish cycle isn’t expected to end until demand rolls over, either driven by an end to the restocking cycle or an economic recession – neither of which are on the near-term horizon
Van, Flatbed, and Reefer prices surge as cities around the nation resume normalcy following the reopening plans in the first half of 2021
The Midwest remained a transportation giant in 2020 with 40% of the truck registration compared to the lowest rate of 7% in the Northeast
Transportation demand is at a record high as inventory levels and costs continue to rise throughout the first half of 2021
In addition to economic factors and the effects of COVID-19 in the U.S., the challenges facing the transportation industry include driver shortages, regulatory pressures, industry disruption, and supply chain challenges
Check out the full report here. Now onto recent happenings in the lower middle market…
This Week’s LMM Activity
MPE Partners completed an investment in Ideal Aluminum, a market-leading designer and manufacturer of premium aluminum outdoor products
Cloud Equity Group acquires Integrated Enterprise Solutions, a provider of IT services
Trivest Partners and Lincoln Road Global Management partner with Brothers Paving & Concrete, an end to end service provider of asphalt, concrete, striping, and all related essential parking lot services and roadway maintenance
T-Street Capital, Sovereign’s Capital, and Clearwell Group team up with Alpha EMC and HydroSpec to form a full-scope environmental services company in the Southeast
Rotunda Capital Partners’ portfolio company, FreshEdge, acquires Valley Produce to expand produce and food distribution in the Southeast
Healthcare-focused RiverGlade Capital announces three new platform investments:
Dynamic Infusion Therapy - outsourced provider of vascular insertion services
Home Helpers Home Care - franchisor of customizable home care services
2nd Chance Treatment Centers - leading regional network of outpatient behavioral centers
HCI Equity Partners-backed JGB Enterprises expands into Canada with first add-on; JGB is a supply chain management and logistics service distributor of industrial hose, fluid power products, and hose assembly solutions
CBD manufacturer and distributor, Bluebird Botanicals, acquires Precision Botanical and receives investment from Juggernaut Capital Partners
Varsity Healthcare Partners-backed Orthopedic Care Partners extends geographic footprint with investment in Tucson Orthopaedic Institute
Fundraising
Baird Capital closes Global Fund II exceeding $340M
Other Stuff
Dallas-based Ancor Capital agrees to settlement with federal regulators
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