Fenway Partners and Roadlink Expand Third Party Logistics Presence with Staffworks Acquisition
FENWAY PARTNERS AND ROADLINK EXPAND THIRD PARTY LOGISTICS PRESENCE WITH STAFFWORKS ACQUISITION
BETHLEHEM, PA–May 21, 2007 – Fenway Partners and RoadLink USA today announced they are expanding their presence in third party logistics (3PL) services through the acquisition of Staffworks, Inc., a leading non-facilities based provider of product handling, warehouse operations and transportation management services. Staffworks is headquartered in San Clemente and currently operates in 17 distribution centers in the Western U.S. Its more than 700 freight handlers unload over 20,000 trailers each month, primarily for customers in the grocery and retail merchandise sectors.
This is the second recent 3PL acquisition that Fenway, a leading middle market private equity firm, has made in conjunction with RoadLink, its intermodal trucking and logistics portfolio company, having acquired Phoenix, AZ-based World S.S. Inc. on April 23. The Staffworks acquisition is the 21st Fenway has made in the transportation and logistics arena. Financial terms of the current transaction were not disclosed.
“Staffworks is an excellent addition to our portfolio of transportation and logistics companies, and fits our strategy to add businesses and capabilities that complement our holdings in the sector,” said Marc Kramer, Managing Director of Fenway Partners and co-head of the firm’s transportation and logistics practice. “Staffworks’ business model also is well-matched to our investment style. Its asset-lite, high-quality service platform is scalable and has the ability to generate attractive levels of free cash flow. Staffworks has built strong customer relationships and a growing franchise in an attractive, fragmented logistics sector niche.”
Staffworks was founded in 1998 by Cesar Scolari, the Company’s President and Chief Executive Officer. Today the Company offers a broad array of product-handling services including: Loading and Unloading, Cross Docking and Trans-loading, Sorting and Segregating Freight, Product Consolidation and other fulfillment services. Recognizing that employee experience and skills are a key factor in its growth, Staffworks has developed a unique compensation structure to motivate employees and maximize profitability. In addition, it seeks to attract and retain a skilled workforce by promoting from within, and its Regional Directors as well as Site Managers all began as Freight Handlers. Staffworks uses a highly flexible approach to meet customers’ individual requirements and has proprietary Electronic Data Interchange (EDI)-compliant technology that enables the Company to cost effectively deliver value to its customers, which include Associated Grocers, C&S Wholesale Grocers, Fred Meyer, Unified Western Grocers and Big 5 Sporting Goods.
As a result of the transaction, the Company will operate as a division of RoadLink with Scolari, who will retain a significant ownership position in Staffworks, serving as Staffworks’ President. The remaining members of the senior management team will retain their current roles with the Company, and San Clemente will continue to be Staffworks’ operational headquarters.
Chris Munro, President and Chief Executive Officer of RoadLink, said, “Staffworks’ success in the 3PL space reflects the Company’s commitment to customer service and the effectiveness of its business model. Our plan going forward is to provide additional resources and capabilities that will enable Staffworks to continue to expand its service offerings and attract new customers.”
Munro continued, “The acquisition of Staffworks adds both scope and scale to RoadLink’s offerings, and complements our existing nationwide transportation and logistics operations.With supply chain efficiency a critical factor in today’s economy, we have a strong and growing platform capable of delivering a broad range of high-quality, cost-effective transportation and logistics services to help customers operate more efficiently. We are looking forward to working with Cesar and the entire Staffworks team.”
“In Fenway and RoadLink, we have found ideal partners for taking Staffworks to the next level,” said Scolari. “By joining forces, we will be well positioned to accelerate the growth of our business while we bring greater resources to bear on expanding our service offerings. This development also means that our employees will have new opportunities as a part of a larger and more diverse organization."
About Staffworks
Staffworks Inc.is a leading non-asset based third party logistics provider of outsourced warehousing support services and supply chain integrator in the Western U.S. Itsmajor service offerings include: Product Handling Services, cross docking/trans-loading, sorting and segregating freight, product consolidation, and various other fulfillment services. Staffworks warehouse support services maximize productivity and create value for the facilities and carriers while minimizing risks resulting from disorganized or hazardous work environments. In addition, Staffworks can leverage its relationships with over 600 common carriers to offer customized transportation solutions that help its customers decide which carrier to use, reduce shipping costs and negotiate favorable rates through locating an appropriate and cost-effective carrier for each shipment using its state-of-the-art technology.
About Fenway Partners
Fenway Partners, Inc. is a middle market private equity firm with offices in New York and Los Angeles and $1.7 billion under management. Fenway invests in profitable businesses with significant upside potential. Fenway companies typically have leading franchises and operate in two core industry segments, branded consumer products and transportation/logistics. With significant knowledge and success investing in these industries, Fenway has built a strong reputation for its hands-on approach to supporting its portfolio companies which include sporting goods manufacturer Easton Bell Sports, school yearbook and class ring manufacturer American Achievement, transportation and logistics provider Greatwide Logistics, expedited ground transportation provider Panther Expedited Services and intermodal logistics service provider RoadLink USA.
About RoadLink
RoadLink USA is the largest independent intermodal logistics service provider in North
America. Operating from coast-to-coast service locations throughout the country, RoadLink manages an extensive, flexible truck fleet comprised of both owner-operators and company-owned trucks to quickly and efficiently manage the last mile of our customer’s supply chain. RoadLink’s leading edge E-Commerce Capabilities and Customer Service Technology provides customers with end-to-end visibility of their shipments from port, railhead or distribution center and permits RoadLink to manage shipment and capital asset utilization to drive improved value for our customers.
For information about RoadLink USA: e-mail the company at or phone, toll free, to 1-87-RoadLink or visit the Company’s website at
Contacts:
Richard Coyle/Brooke Morganstein
Sard Verbinnen & Co
212-687-8080
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