MIAMI, FL (February 1, 2024) – Edgewater Strategy Group (“Edgewater”), a boutique advisory firm specializing in M&A, capital raises and Office of the CFO services, today announced that it supported H.I.G. Capital (“H.I.G.”), the Miami-based global alternative investment firm, on the sale of its portfolio company Cardinal Logistics (“Cardinal”) to Ryder System, Inc. (NYSE: R) (“Ryder”).
Established in 1997 and based in Concord, North Carolina, Cardinal offers outsourced transportation and logistics services centered on dedicated contract carriage, through which customers secure a dedicated fleet and professional drivers to run complex routes between distribution centers, suppliers and stores. The company complements that offering with freight brokerage and last-mile delivery, serving customers in consumer packaged goods, grocery, omnichannel retail, building products, automotive and industrial markets. At the time of the sale, Cardinal ran a nationwide network of roughly 200 locations, with a fleet of about 2,900 power vehicles and more than 3,400 drivers.
H.I.G. acquired Cardinal in June 2019. During its ownership, H.I.G. and Cardinal’s management invested in the company’s dedicated carriage sales effort, upgraded and expanded its fleet, grew an asset-light brokerage offering and added last-mile capabilities through a strategic acquisition, more than doubling Cardinal’s earnings over the hold period. Ryder, a leading logistics and transportation company, announced the same day that it had completed the acquisition and plans to integrate the business across its dedicated, fleet management and supply chain operations.
Edgewater worked as an extension of the H.I.G. deal team through the sale process, alongside Cardinal’s management. Edgewater prepared and quality-controlled the virtual data room, helped develop the company sales presentation, and built supporting pricing and profitability analyses.
“Dedicated contract carriage is won and kept one route at a time. Cardinal’s fleets and drivers work inside its customers’ distribution networks, which makes the service difficult to replace and the economics worth understanding in detail. Working alongside the H.I.G. team, our job was to make that value clear and verifiable, with a data room, sales presentation and analyses built to withstand a strategic buyer’s scrutiny. H.I.G. and Cardinal’s management built a truly national business, and Ryder is a natural home for its next stage of growth.”
Hawken LordManaging Partner, Edgewater Strategy Group
Alongside Edgewater’s work with the H.I.G. deal team, William Blair & Company served as financial advisor and McDermott Will & Emery LLP served as legal counsel to Cardinal. Greenberg Traurig LLP served as legal counsel to Ryder. Terms of the transaction were not disclosed.
H.I.G.’s full announcement is available here.
About H.I.G. Capital
H.I.G. Capital is a leading global alternative investment firm focused on the middle market. Founded in 1993 and headquartered in Miami, H.I.G. invests across private equity, growth equity, credit, real estate and infrastructure strategies, and operates from offices across the United States, Europe, Latin America and the Middle East. For more information, visit hig.com.
About Cardinal Logistics
Cardinal Logistics is a Concord, North Carolina–based provider of dedicated contract carriage, supplying customers with dedicated fleets and professional drivers, complemented by freight brokerage and last-mile delivery services. Cardinal is now part of Ryder System, Inc., a leading logistics and transportation company operating across the United States, Mexico and Canada. For more information, visit ryder.com.
About Edgewater Strategy Group
Edgewater Strategy Group is a boutique advisory firm specializing in Mergers and Acquisitions, Capital Raises, and Office of the CFO services. Edgewater works as an extension of its clients’ deal and finance teams, from sourcing and diligence through close and post-close integration. For more information, visit edgewaterstrategygroup.com.
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