Oak Hill Capital Partners has acquired a majority stake in Arnold Logistics, a warehouse and transportation logistics firm. Ed Arnold, the company’s founder, and New Orleans-based private equity firm LongueVue Capital will hold about a 14 percent stake in the company. The terms of the deal were not disclosed.
Oak Hill, which has invested in logistics before, says it sees Arnold as a solid platform to build a national third-party logistics business thanks to its strong management and solid customer base.
Harrisburg, Pennsylvania-based Arnold, founded in 1976, provides warehousing, sorting, product assembly, repackaging and transportation services at 24 warehouses located primarily in Pennsylvania, with additional sites in Illinois, Texas and Ohio. The company has a “leading market position in the Northeast and Mid-Atlantic region, as well as a growing position in the Midwest and West,” according to a statement from Oak Hill.
Wells Fargo provided financing and Gibson, Dunn & Crutcher advised Oak Hill on the transaction.
Robert Bass’ Oak Hill closed its second private equity fund on $2.5 billion last year. Its first fund is said to have returned more than 50 percent to investors.
Recently, the firm sold TravelCenters of America to a Massachusetts-based REIT for $1.9 billion (€1.5 billion), well above the $731 million the firm paid in 2000 for one of the largest chains of travel stop operators along US highways.