• Home
• Reviews
• Insurance
• New Car Buyer's Guide
• Buyer's Guides By Make
• Auto Parts
• Video/Audio
• PennySaver

Wynnchurch Capital Recapitalizes Calyx Transportation Group Inc.

CHICAGO--May 24, 2006--Wynnchurch Capital Partners, a Chicago-based middle market private equity firm, announced that it has purchased a majority interest in Calyx Transportation Group Inc., via a recapitalization in partnership with Calyx's management team. Headquartered in the greater Toronto area, Calyx is a leading provider of logistics and transportation services to the Canadian marketplace. The investment marks the first platform acquisition through Wynnchurch's second fund, Wynnchurch Capital Partners II, L.P. Senior debt financing was arranged by BMO Nesbitt Burns with a syndicate of lenders that includes Bank of Montreal, The Bank of Nova Scotia and GE Capital, while McKenna Gale Capital provided subordinated debt financing for the transaction. Financial terms of the transaction are not being disclosed.

Calyx is a leading provider of third party logistics and transportation services in the Canadian market, whose services include domestic intermodal freight forwarding, international air and ocean freight forwarding, dedicated and core carrier transportation, specialized less-than-truckload (LTL) transportation, truckload transportation (TL) and value added warehousing services. Calyx Transportation Group is comprised of several operating entities including National Fast Freight, Muir's Cartage, Euroworld Transport, Nesel Fast Freight, Muir's International, Transport Gingras, Creditstone Container Services and Indis Integrated Distribution Services. The company's success has been achieved through rapid organic expansion, highly efficient operations and the successful execution and implementation of strategic acquisitions.

Richard Muir, former CEO and part-owner of Calyx and Rob Donaghey, current CEO, President and part-owner, who have together managed the logistics and transportation company for the last 15 years, will continue their involvement and maintain a significant ownership interest in the company. As part of the transaction, Mr. Donaghey will assume the additional title and responsibilities of CEO and remain as President, and Mr. Muir will assume the title and responsibilities of Vice-Chairman.

"We are excited to begin the next chapter for this company under Rob's leadership," said Richard Muir. "There are a number of very significant growth initiatives in front of the company, and with Wynnchurch's support, we'll be able to take advantage of them to the fullest extent," Muir said.

Calyx's CEO, Rob Donaghey commented, "Wynnchurch is an ideal partner for us given the firm's investment experience in the logistics and transportation sector as well as in Canada, generally. They understand our business and share our enthusiasm for growing the company through expanded capabilities and strategic acquisitions. They also bring both operational and financial resources that can accelerate our growth strategy."

Frank Hayes, Partner at Wynnchurch Capital commented, "We are thrilled with the opportunity to partner with Rob and Richard and to continue to grow the company under Rob's leadership. Consistent with Wynnchurch's strategy, we are investing in a market leader with an outstanding management team; and, we are pleased to be making our second platform investment in the Canadian logistics space." Chip Grace, Managing Director at Wynnchurch Capital, added, "The Calyx story is an impressive one, as the company has doubled in size over the past five years. We are excited by the company's unique blend of asset, asset-light and non-asset based services and we believe Calyx is uniquely positioned to take advantage of the attractive market dynamics in the logistics sector."

About Wynnchurch

Located in the Chicago suburb of Lake Forest, Illinois and founded in 1999, Wynnchurch Capital is a leading middle-market private equity investment firm. Wynnchurch's strategy is to partner with middle market companies in the United States and Canada which have outstanding management teams and possess the potential for substantial growth and profit improvement. Wynnchurch Capital manages a number of private equity funds with capital under management in excess of $500 million specializing in management buyouts, recapitalizations, corporate spin-offs, restructurings and growth capital investments. More information on Wynnchurch Capital can be found at www.wynnchurch.com.