Private equity firm Gryphon Investors added to its logistics portfolio with the purchase of a majority stake in Atlanta-based freight broker Nolan Transportation Group for an undisclosed amount.
The deal, announced Dec. 18, includes an unspecified investment in NTG by Transportation Insight, a transportation management and logistics software firm acquired by Gryphon in August 2018, plus a continued significant ownership position by founder and chairman Kevin Nolan and CEO Harold Baron.
The two companies will operate separately under a holding company structure but will cooperate to leverage the services of each firm with combined gross revenue of approximately $3 billion, company officials noted.
The deal also means that Ridgemont Equity Partners will exit its investment in NTG, according to a statement issued by Gryphon. Charlotte, N.C.-based Ridgemont has owned a stake in NTG since 2016 and has recently invested in several other transportation and logistics companies, including Worldwide Express Global Logistics, Unishippers Inc. and Dickinson Fleet Services.
“NTG is a fast-growing company with an energetic, team-oriented culture in a sector that is experiencing strong demand,” said Robert Grady, a partner at Gryphon and head of the firm’s industrial growth group. “We’re excited about the opportunity to create a market leader in the outsourced transportation services industry.”
Grady said the addition of a large brokerage operation was a major objective ever since Gryphon invested in Transportation Insight.
Based in Hickory, N.C., Transportation Insight provides carrier sourcing, freight bill auditing and payment services, transportation management system applications, parcel shipping technology and business intelligence.
“This is a critical and exciting step in our journey to expand this platform,” Grady explained.
NTG provides truck and rail intermodal freight brokerage service for more than 6,000 customers in the United States, Canada and Mexico and ranks No. 24 on the Transport Topics list of top freight brokerage firms in North America. The company reported net revenue of $60.5 million and gross revenue of $471 million in 2017.
“We look forward to joining forces with Gryphon and Transportation Insight to increase our footprint, continue to grow our company and better serve our customers,” Nolan said in a statement.