Fenway Partners, a middle-market private equity firm, announced today, Feb. 12, that it has partnered with the current owners to acquire a majority interest in Gemini Traffic Sales, a regional less-than-truckload and nationwide full truckload carrier specializing in the transportation of time- and temperature-sensitive products. Gemini represents Fenway’s first all-temperature-controlled trucking investment and its 17th acquisition in the transportation and logistics space. Financial terms of the transaction were not disclosed.
Founded in 1985 by Harry Winrow, Gemini has grown into a nationally recognized core carrier for shippers of food and beverages, flavorings and ingredients, pharmaceuticals and healthcare products. Utilizing its fleet of 250 company-owned tractors and owner-operators along with 400 trailers, Gemini offers a wide variety of temperature-controlled freight services, including LTL consolidation and distribution, full truckload carrier capabilities, brokerage and warehousing to its more than 1,000 customers. Headquartered in Edison, N.J., the company maintains five terminal locations in strategic areas of the United States, including Atlanta, Los Angeles, Dallas and New Jersey.
In addition to its standard refrigerated transportation offerings, Gemini also has the specialized capabilities and necessary qualifications to transport products with alcohol bases, which are regarded as hazardous material by the U.S. Department of Transportation. These capabilities and qualifications also permit the company to ship other regulated products, giving it a significant opportunity to grow its business with pharmaceutical companies, Fenway officials say.
“As a recognized operator with the infrastructure and know-how to provide temperature-controlled and specialized freight services, Gemini holds a strong position in a large and growing niche in the transportation industry,” says Marc Kramer, managing director of Fenway Partners and head of the firm’s transportation/logistics practice. “Gemini is an exciting addition to Fenway’s portfolio of transportation and logistics investments, as it is a good demonstration of our ability to partner with a founder, bring additional resources to enhance the company’s operating platform and identify highly attractive acquisitions and growth opportunities to accelerate Gemini’s future value creation.”
“Fenway has been actively exploring opportunities for investments in the temperature- controlled transportation and logistics market in an effort to expand our portfolio into new, attractive sectors of the industry,” says Aron Schwartz, managing director of Fenway Partners. “The acquisition of Gemini is the first component in our strategy to create a national and vertically integrated competitor in temperature-controlled transportation and logistics, with a significant competitive advantage in a highly fragmented segment of the industry.”
“Fenway Partners has a well-deserved reputation for helping strong companies accelerate their growth,” says Harry Winrow, founder and president of Gemini. “We are excited by the prospect of joining with Fenway, and gaining the insights of its team of seasoned investment professionals. We also will benefit from having access to Fenway’s extensive network of transportation industry resources. Finally, we look forward to working together to build on Gemini’s strong service network, accelerate expansion of our geographical and service offerings, and take advantage of acquisition opportunities in the marketplace.”