Cox Transportation Products and services introduced Wednesday the purchase of truckload supplier Outwest Specific.
Based totally in El Paso, Texas, Outwest operates a fleet of greater than 400 tractors and 1,200 trailers all over the southwestern U.S. The service focuses on Mexican cross-border logistics, serving the retail, clinical and production sectors. It additionally supplies warehousing, transloading and consolidation services and products via a community of terminals and drop yards.
Phrases of the transaction weren’t disclosed. Personal fairness corporations Expedition Capital Companions and Prudential Personal Capital led a recapitalization of Cox at the side of the purchase. Truist (NYSE: TFC) led a syndicate of 5 banks accountable for the debt financing.
“We recognize the industry they constructed and think about it as a really perfect supplement to ours,” Cox CEO Jay Smith stated in a information unencumber. “Via combining Outwest’s capability and experience with Cox’s, we will be able to higher serve our shoppers and make stronger our position as a depended on and significant provide chain spouse.”
Outwest’s cross-border operations have benefited from an building up within the near-shoring of producing, a information unencumber stated.
Outwest founders Michael Puzio and Zachary Chilson “will retain important possession stakes within the blended corporate” and can proceed to control the day-to-day operations. The fleet will proceed to run underneath the Outwest emblem.
“This acquisition represents crucial first step in our ongoing efforts to increase and deepen our skill to serve our shoppers throughout truckload transportation and brokerage,” Smith added.
Cox is a 40-year-old transportation and brokerage corporate headquartered in Ashland, Virginia. It focuses on time-sensitive TL freight. Cox’s expansion technique contains natural tasks in addition to M&A.
“Zach and I felt strongly that it was once the best time to align Outwest with a robust truckload service like Cox with a transparent and demonstrated plan for luck in lately’s transportation market,” Puzio stated. “Zach and I will be able to proceed to be deeply invested and fascinated with making sure nice results for all our staff and shoppers.”
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