For Immediate Release
Stamford, CT. October 20, 2006 – Oak Hill Capital Partners announced today that it, in partnership with management, has executed a definitive agreement to acquire Arnold Logistics, a leading outsourced warehouse and transportation logistics provider (“3PL”). Ed Arnold (the founder) and LongueVue Capital, LLC along with management will retain an approximate 14% stake in the company.
Terms of the transaction were not disclosed.
Founded in 1976 by Ed Arnold and based in Harrisburg, Pennsylvania, Arnold serves customers mainly in the consumer packaged goods, publishing and consumer electronics sectors. Services include basic warehousing, sorting, product assembly and repackaging and transportation. Arnold manages 24 leased warehouses located throughout the United States (Pennsylvania (17), Illinois (3), Texas (2), Ohio (1) and a new facility in Reno Nevada). Through these warehouses, Arnold has a leading market position in the Northeast and Mid-Atlantic region, as well as a growing position in the Mid-West and West.
In light of Arnold’s continued growth prospects, reputation for customer service and execution, and quality customer base, Oak Hill said it views Arnold as a solid platform to become a national, full service 3PL provider. Oak Hill says it targets industry-leading companies with strong management teams. Oak Hill has invested in the logistics industry in the past and according to the company this business segment remains a primary focus.
Arnold’s President and CEO Douglas Enck said, “We are pleased and excited by the confidence Oak Hill has placed in our company by becoming our new equity partner. With its significant financial strength and industry knowledge and experience Oak Hill Capital will play a significant role in supporting the company’s continued growth.”
Denis Nayden, a Managing Partner at Oak Hill Capital, said, “Arnold represents a solid platform for accelerated growth due to its strong management, high-quality customer base, and focus on customer service. We intend to make Arnold a national, full-service 3PL provider.”Wells Fargo & Co. provided the committed debt financing and Gibson, Dunn & Crutcher LLP served as legal advisors to Oak Hill.