The Lower Middle Market

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Transportation Sector Breakdown and More!

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Transportation Sector Breakdown and More!

Week of July 19th LMM Highlights

Daniel McKeon
Jul 23, 2021
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Transportation Sector Breakdown and More!

thelowermiddlemarket.privsource.com

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

Star Mountain Capital closes its oversubscribed Strategic Credit Income Fund 3’s $225m leverage facility

Other Stuff

Dallas-based Ancor Capital agrees to settlement with federal regulators

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Registered for @BrentBeshore's Capital Camp. Very excited about this. Who else out there is attending?
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