NEW ORLEANS – New Orleans-based LongueVue Capital is expanding its transportation and logistics portfolio with an investment in Customized Distribution Services, a third-party logistics company that operates about 2 million square feet of warehouse space across five states.
LongueVue Capital (LVC) partnered with West Palm Beach-based Lake Ten Capital Partners (LTCP) and the management team of Customized Distribution Services (CDS) to recapitalize the company and provide growth capital for strategic initiatives.
Headquartered in Wharton, New Jersey, CDS operates facilities in New Jersey, Pennsylvania, Georgia, Missouri and California. The company provides third-party logistics services for business-to-business and direct-to-consumer operations, including warehousing, inventory management, distribution and order fulfillment. Its facilities include food-grade warehousing, with certifications and compliance programs covering food safety, regulated products and supply chain security.
Founded in 1996, CDS has expanded over the past three decades and now operates dedicated facilities for individual customers as well as facilities serving multiple customers across the country. Many of its customer relationships span several decades, and the company serves a range of industries, with particular expertise in food and beverage and consumer durable goods.
LongueVue Capital – Logistics Portfolio
LongueVue Capital is a New Orleans-based private equity firm founded in 2001 that manages more than $1 billion in assets across four funds. Transportation and logistics is one of the firm’s target investment sectors, with a focus that includes contract logistics, e-commerce fulfillment, inventory management and other value-added warehousing and distribution services. Its current logistics portfolio also includes RBW Logistics, TTi Logistics and Wagner Logistics.
“Our team of long-tenured executives, managers and employees is thrilled to be partnering with LVC and LTCP,” said Adalberto “Alberto” Guerra, president and CEO of CDS. “In addition to their industry experience and strategic resources, LVC’s partnership first mentality and LTCP’s established relationship with the Company made them the ideal partners for our next phase of growth. We look forward to continuing to provide the highest level of service possible to our customers while also expanding our footprint and capabilities together.”
Scott McWilliams, LVC’s transportation and logistics operating partner, said CDS’s facilities, services, geographic presence and customer relationships contributed to the investment. LVC identifies value-added warehousing and distribution, or VAWD, as one of its target logistics sectors.
“It has been clear since our first meeting with them that the management team at CDS has a keen focus on operating high-quality facilities, offering value-added services, and putting customers first,” McWilliams said. “In addition, their strategic footprint and deep relationships within core end markets made CDS the optimal choice as our newest platform in the VAWD space. CDS has a bright future ahead and I am excited to be working with the entire team.”
“In conjunction with Lake Ten Capital, LongueVue Capital is thrilled to announce its partnership with Alberto and the rest of the CDS team,” said Ray Jeandron, managing partner at LongueVue Capital. “The tenure and breadth of CDS’s management team and customer relationships as well as the demonstrable ability to execute at both a regional and national level within unique industries are testaments to the Company’s leadership and culture. LVC is pleased to welcome CDS to the LVC family as our eighth T&L platform investment to date.”
The transaction also represents LTCP’s first platform investment.
“LTCP is very happy to be making its inaugural platform investment in CDS alongside LVC,” said Paul Psak, managing partner at Lake Ten Capital Partners. “The dedication and quality of the leadership team at CDS is second to none. We look forward to collectively providing strategic and financial resources to support the expansion of their geographic footprint and service offerings to an even broader set of high-caliber customers and growing end markets. We’d like to thank the teams at CDS and LVC for their work and partnership, and particularly CDS COO Joe Leccesse for introducing us to the Company.”
CDS Chief Operating Officer Joe Leccesse, Chief Financial Officer Elise Adams and Vice President of Human Resources Ben Mera worked alongside Guerra on the transaction. LVC Vice President Brennon Brignac and Senior Associate Hutton Johnston worked alongside McWilliams, Jeandron and Psak on the transaction.
Norton Rose Fulbright (US) LLP served as legal counsel to LVC, Greenberg Traurig LLP served as legal counsel to LTCP and McCarter & English LLP served as legal counsel to CDS. BankUnited provided senior debt financing for the transaction.
