EQT to sell majority stake in Direct ChassisLink to Funds Managed by Affiliates of Apollo Global Management
- EQT Infrastructure to sell majority stake in DCLI, the largest marine and domestic chassis provider in North America, to funds managed by affiliates of Apollo Global Management, LLC
- EQT Infrastructure to maintain a minority stake and will continue to support DCLI in solidifying its position as a leading asset provider in the North American intermodal market
- During EQT Infrastructure’s ownership, DCLI has experienced substantial growth, strengthened its margins and expanded its digital supply chain platform
The EQT Infrastructure II and EQT Infrastructure III Funds (together “EQT Infrastructure” or “EQT”) today announced that they have entered into a definitive agreement to sell a majority stake in Direct ChassisLink, Inc. (“DCLI” or the “company”) to funds managed by affiliates of Apollo Global Management, LLC (“Apollo”). Under the terms of the agreement, EQT will retain a 20% minority stake.
Acquired by EQT in June 2016, DCLI is today a leading provider of marine and domestic chassis and asset management services in North America, operating an extensive network of approximately 235,000 chassis across over 450 locations. Chassis are an essential part of the transportation value chain and are used to carry containers between ships in port and local destinations, to and from intermodal hubs for long haul transport by rail or truck, and for last mile distribution.
Together with the management team, EQT has supported DCLI in executing on a business plan focused on accelerated growth. During EQT Infrastructure’s ownership, DCLI expanded into the domestic chassis market, acquiring nearly 90,000 domestic chassis supporting blue-chip customers through long-term agreements, and continued expansion within the marine chassis market. These transactions have not only nearly doubled the size of DCLI, but also diversified the company’s product offering and customer base. In addition, they have expanded DCLI’s national footprint to encompass all major ports and railway terminals in the US, positioning it as a leading chassis provider in the ever-growing North American market.
DCLI’s subsidiary, Blume Global, has developed its offering to include asset management, logistics execution, end-to-end supply chain visibility, optimization, automated financial settlement and more by leveraging nearly 25 years of data and customer insights. Since 1994, Blume Global has built a trusted platform in the global supply chain space with its integrated network and data insights across nearly 100 countries, more than 1,400 offices with 300+ IMCs, and 6,000+ motor carriers, and managing approximately 300,000 intermodal assets. Its platform processes USD 1 billion in transactions for customers with 99.99 percent billing accuracy.
Erwin Thompson, Partner at EQT Partners and Investment Advisor to EQT Infrastructure, commented: “DCLI has undergone a significant transformation and today is a leader in the North American intermodal market. Through DCLI’s expansion into the domestic chassis market and the transformation of Blume Global, the company has taken a leading position in providing a comprehensive suite of asset and supply chain services. DCLI has done a tremendous job expanding and executing on its strategy, and EQT is confident that Apollo will be a great partner as DCLI continues to build on its strong momentum. EQT Infrastructure is excited to maintain a minority stake in the company and looks forward to remaining a part of DCLI’s bright future.”
Bill Shea, CEO of DCLI, said: "With the support of EQT, DCLI has grown significantly, both in terms of our footprint in North America and our digital supply chain offering. We continue to build and deliver solutions that benefit participants across the global supply chain. Going forward, we are confident that, together with Apollo and EQT, we will continue to grow and strengthen the DCLI offering.”
The transaction is subject to customary conditions and approvals. It is expected to close in Q2 2019. Financial terms of the transaction were not disclosed.
Citigroup Global Markets Inc. acted as financial advisor and Simpson Thacher & Bartlett LLP as legal advisor to DCLI and EQT Infrastructure.
Erwin Thompson, Partner at EQT Partners, Investment Advisor to EQT Infrastructure, +1 917 281 0860
US inquiries: Stephanie Greengarten, +1 646 687 6810, firstname.lastname@example.org
International inquiries: EQT Press Office, +46 8 506 55 334, email@example.com
EQT is a leading investment firm with more than EUR 50 billion in raised capital across 28 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
More info: www.eqtpartners.com
DCLI is the largest provider of marine and domestic container chassis and a leading provider of asset management services to the U.S. intermodal industry. The company owns, leases, and manages over 145,000 marine chassis and 89,000 domestic chassis. DCLI’s strategic partnership with Blume Global (formerly REZ-1), which began in 2014, uniquely positions the company to deliver value to its customers across the supply chain ecosystem via Blume’s digital supply chain platform. DCLI has a strong focus on safety and sustainability and is a participant in the U.S. Environmental Protection Agency’s (EPA) innovative WasteWise program.
More info: www.dcli.com
About Blume Global
From the world's largest global retailers, manufacturers and consumer products companies to the smallest local drayage trucking companies, success depends on end-to-end visibility and orchestration of global supply chain networks across every move, every mode and every mile. With its AI-enabled, data-driven digital platform and solutions for real-time visibility, logistics execution, asset management, optimization and financial settlement, Blume Global leverages 25 years of data insights, its globally connected network, and advanced technologies to help enterprises be more agile and responsive, improve service delivery and reduce costs.
More info: www.blumeglobal.com