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The Carlyle Group Acquires United Road Services, Provider of Finished Vehicle Transport and Logistics in North America

CG

Carlyle Partnership Will Accelerate Disciplined Growth

PR Newswire

WASHINGTON and ROMULUS, Mich., Sept. 5, 2017 /PRNewswire/ -- Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced its acquisition of United Road Services from Charlesbank Capital Partners, LLC.

Headquartered in Romulus, Michigan, United Road is a prominent provider of vehicle transport and logistics in North America. United Road serves 10,000-plus diverse customers – including manufacturers, retailers, finance and leasing companies, rental agencies, auctions, web-based logistics firms and individuals – transporting millions of new, remarketed and specialty vehicles annually.

"The Carlyle Group's global reach and expertise coupled with its reputation for helping companies thrive, makes it an exceptional investor partner for United Road," said Kathleen McCann, Chairman and CEO of United Road Services. "United Road is well positioned for continued growth in the new and remarketed vehicle segments. Our strengths are our dedicated team, great customers, geographic reach and our technology. We have a nationally integrated network of providers and a proprietary technology platform that together give us the flexibility to respond quickly to customers' needs. We expect the Carlyle team will help us accelerate our disciplined growth and further enhance our ability to serve our customers."

Ms. McCann will continue as CEO of United Road. Mark Anderson will continue as President and COO and the balance of the current management team will remain in place.

"We are so grateful to Charlesbank and our amazing board of directors for their support over the past five years," said Ms. McCann. "Our strategic growth platform was really turbocharged in late 2012 when we were acquired by Charlesbank. They provided the capital, support and encouragement to expand our reach and capabilities - both organically and through the acquisition of a major competitor, which gave us a deeper presence in the southeast and southwest U.S.  Today our fabulous team is on track to move north of 3.5 million vehicles in 2017 up from 1.5 million in 2012."

Since 2012 United Road Services has diversified and expanded its customer base and market reach, enhanced its owned vehicle transport fleet, formed even more strategic partnerships with owner operators and third party carriers, and grown its national sales and customer service capacity, among other strategies.

Carlyle Managing Director Adam Glucksman said, "United Road's growth in recent years is a testament to its superb leadership and quality customer service. To our partnership with Kathleen and her team, we'll bring Carlyle's deep transportation experience and network, which we believe will contribute meaningfully to United Road's continued growth trajectory."

"It was a true privilege for Charlesbank to partner with United Road during this phase of its growth," said Michael Choe, Managing Director and CEO of Charlesbank Capital Partners. "We have enjoyed working with Kathleen, Mark and the rest of the team to execute on key elements of our investment thesis, including implementing its national remarketed strategy, accelerating asset-light revenue growth and maximizing its technology platform to improve route efficiency. The success of these initiatives has resulted in a very successful investment for our investors, and we believe the company has both the people and the structure to support ongoing growth under new ownership."  

"United Road's goal is to be the supplier and employer of choice in the finished vehicle logistics industry," said COO Anderson. "We want passionate, hard-working and smart people on our team; we work hard to ensure our customers trust United Road to move their cars safely, on-time and damage-free. This combination of talent and trust is what drives United Road's success today and will continue to do so into the future."

Mary Petrovich, a Carlyle Operating Executive and Chairwoman of AxleTech International, who will serve on the board of United Road, said, "Kathleen is an accomplished leader with vision and drive. I look forward to supporting her efforts to take United Road to the next level of success." AxleTech is a Carlyle-backed global designer and manufacturer of drivetrain systems for on- and off-highway vehicles.

Financial details regarding the transaction were not disclosed. Equity for this transaction came from Carlyle Equity Opportunity Fund II, a $2.4 billion fund that invests in middle-market companies in the U.S.

United Road and Charlesbank were represented by RBC Capital Markets and William Blair in this transaction. Carlyle was advised by Kirkland & Ellis as legal counsel and Ernst & Young as financial advisor.

ABOUT UNITED ROAD SERVICES, INC.
Founded in 1998, United Road Services is the premier finished vehicle logistics company in North America. Each year, coast to coast and across borders, United Road manages the transport of more than 3 million vehicles. Headquartered in Romulus, Michigan, with service centers across the U.S. and Canada the company operates an integrated national network, has 1,700 employees and more than 6,000 owned and contracted vehicle carriers.

Customers include all major global vehicle manufacturers, remarketers, financial institutions, car auctions, car dealers, rental companies and on-line sales organizations. Its patented, industry-leading OVISS logistics system provides efficient routing, loadbuilding and real time order visibility for customers. United Road was the first in its industry to receive the U.S. Environmental Protection Agency's Smartway certification for its focus on emerging technologies supporting environmental improvement. For information, visit www.unitedroad.com.

ABOUT THE CARLYLE GROUP
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $170 billion of assets under management across 299 investment vehicles as of June 30, 2017. Carlyle's purpose is to invest wisely ad create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defenses & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents. For information, visit www.carlyle.com

ABOUT CHARLESBANK CAPITAL PARTNERS, LLC
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private equity investment firm managing more than $3.4 billion of capital. Charlesbank focuses on management-led buy-outs and growth capital financings, typically of companies with enterprise value of between $150 million to $1.5 billion, and also engages in opportunistic credit investments. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantage and excellent prospects for growth. For information, visit www.charlesbank.com.

View original content:http://www.prnewswire.com/news-releases/the-carlyle-group-acquires-united-road-services-provider-of-finished-vehicle-transport-and-logistics-in-north-america-300513595.html

SOURCE United Road Services



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