February 2009
Coyote Announces Merger Transaction with General Freight Services
Coyote Logistics ("Coyote") of Lake Forest, Illinois, and General Freight Services ("GFS") of Atlanta, Georgia, today announced a merger to create a leading provider of truck and intermodal brokerage services. The combined company, to retain the name Coyote Logistics, has 330 employees, over $250 million in 2008 revenue and offices throughout North America and Europe. Terms of the transaction were not disclosed.
Coyote utilizes an asset-light model to contract shipments between shipping customers and transportation providers, without directly owning any equipment. The company was founded by Jeff Silver, former COO of American Backhaulers, the second largest truck brokerage prior to its acquisition by CH Robinson in 1999. Coyote services customers across geographies and industries, including paper, rolls, and coated board; lumber, timber, and forest products; dry and perishable foodstuff; or automotive parts.
Jeff Silver, CEO of Coyote, will retain that role in the combined company. Mr. Silver explained, "This transaction brings together two leaders in highway and intermodal transportation. We are excited to combine the professionalism and experience of the senior brokers at GFS with the industry-leading technology and processes of Coyote. In addition, all employees, customers and carriers will benefit from our increased network density, lane coverage and scale."
Coyote has been growing rapidly since foundation in 2006 both organically and through acquisition. Coyote acquired eGlobe Logistics ("eGlobe"), a truck brokerage headquartered in Caen, France, in December 2007 and Integra Logistics ("Integra"), an intermodal broker (truck-rail-truck) headquartered in Alpharetta, Georgia, in February 2008.
GFS similarly offers truck and intermodal services throughout North America. GFS was founded in 1999 by Dan Smith, a pioneer of the third party logistics industry. The company has experienced strong and consistent growth over the last decade and has recently added international forwarding expertise to its core capabilities. Mr. Smith, who will join the Board of Directors of Coyote, commented: "I am proud to have found a partner for GFS that shares the core values of operational excellence and customer service upon which GFS was built. I am confident that Jeff Silver is the right executive to take Coyote and GFS to the next level of success."
The combined company’s management team will consist of senior managers from each component company. Greg Sebolt, president of General Freight Services, will become COO of Coyote, and Jonathan Sisler, CFO of GFS, will become CFO of Coyote. Mitch Bernet, who co-founded Integra, will retain the role of President of Coyote North America, and Chuck Herzog, co-founder of Integra, will retain the role of Executive Vice-President.
Funding for the transaction was provided by private equity firm Warburg Pincus, an experienced investor in the logistics sector. Alex Berzofsky, Managing Director of Warburg Pincus and Director of Coyote noted, "Jeff Silver’s expertise in superior systems and service is unmatched in the industry and defines Coyote’s success. We are pleased to continue to back Jeff Silver in building a uniquely scalable transportation platform. The GFS acquisition is an exciting step forward in that pursuit."
Warburg Pincus is a leading global private equity firm. The firm currently has approximately $30 billion of assets under management including $10 billion available for investment in a range of sectors including business services, logistics, healthcare, financial services, energy, technology, media, telecommunications, consumer, industrial and real estate. Its active portfolio of more than 100 companies is highly diversified by stage, sector and geography. Warburg Pincus is a growth investor and an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 12 private equity funds which have invested more than $29 billion in approximately 600 companies in 30 countries. The firm has offices in Beijing, Frankfurt, Hong Kong, London, Mumbai, New York, San Francisco, Shanghai and Tokyo.