Target: James Brown Contracting
Sponsors: Navigation Capital Partners; VVS Capital
Financial Adviser: Seller: Transportation Capital Partners
Legal Counsel: Navigation Capital Partners: Hunton & Williams; VVS Capital: Powell Goldstein; Seller: Miller & Martin
Navigation Capital paid between $10 million and $40 million in equity for James Brown Holdings. The 32-year-old company serves as the lower mid-market firm’s latest platform acquisition. With a debt facility from Wells Fargo Bank and John Hancock Life Insurance Company, Navigation Capital is already looking at a number of complimentary services and add-on ideas, said David Panton, partner at the firm.
Brown, the company’s founder and sole owner, cashed out of the business he built but plans to remain active in an executive role. Replacing him as CEO is Brian Kinsey, a trucking industry veteran that worked with companies like Landstar System, a logistics business with a $2.8 billion market capitalization. Navigation Capital has been searching for targets with Kinsey in mind, Panton said.
Joining majority owner Navigation Capital on the deal,
James Brown Holings’s brokerage business is typical for trucking companies, Panton said. JBT Brokerage serves to fill the business’s so-called “empty lanes,” arranging extra routes so that trucks don’t return empty-handed from deliveries. Navigation Capital was attracted to James Brown Holdings’s strong on-time performance and up-to-date technology, Panton said.
Navigation Capital’s investment came from
Navigation Capital focuses on niche manufacturing and services business generating revenues of under $200 million.—E.G.