March 13, 2019 2:00 PM, EDT

Apollo Global Acquires Direct ChassisLink, Blume Global

Direct ChassisLinkDirect ChassisLink Inc.

Apollo Global Management acquired Direct ChassisLink Inc. and Blume Global Inc. from EQT Infrastructure, according to a joint news release from Apollo Global and Direct ChassisLink.

Financial terms were not disclosed, and Apollo and Direct ChassisLink declined comment beyond the news release. New York-based Apollo also declined to confirm a news report that it had spent $2.5 billion to acquire majority ownership of the two trucking-related firms.

Direct ChassisLink

Apollo’s portfolio as of Dec. 31 stood at $280 billion in private equity, credit and assets funds invested across nine industries, in which the firm said it has experience and resources.

“I think it’s a revenue maker for [Apollo Global],” Tyler Rushforth, executive director of the Intermodal Motor Carriers Conference, told Transport Topics about the deal. “Intermodal is a growing space.”

In intermodal freight, chassis are used to carry containers among ships in port and to local destinations, such as warehouses or other ports. Chassis also are used to carry containers from intermodal hubs for transport by rail or truck.

Founded in 2009 and based in Charlotte, N.C., Direct ChassisLink is a provider of domestic and marine chassis to the intermodal supply chain. The company has a network of about 235,000 chassis across more than 450 locations, according to a company statement. Its customers consist primarily of container shippers, railroads, trucking firms and logistics businesses that use chassis under long-term contracts, according to the news release.

In the past, shipping companies have managed some chassis business via direct leasing, but now are more likely happy to either let intermodal and trucking companies handle it, or have agreements with chassis companies, Rushforth said.

Direct ChassisLink

Direct ChassisLink said almost one in three containerized shipments in the United States uses one of its chassis.

Blume Global, a California company that runs a digital supply chain platform, gives clients real-time visibility across supply chains, according to the news release. Founded in 1994, Blume Global operates in 100 countries.

As part of the deal, EQT will retain a 20% minority stake in Direct ChassisLink and Blume Global. The transaction is expected to close in the second quarter, according to Apollo.

Apollo was founded in 1990 on an $800 million loan and initially focused on distressed buyouts and managing portfolios of credit, according to the company’s website.