Matrix Capital Markets Group provided merger and acquisition advisory services to ICAT Logistics for its sale to an investment group led by KCM Capital Partners, Lightspring Capital Partners and Midwest Mezzanine Funds. Live Oak Bank provided senior debt financing in support of the transaction.
Founded in 1993, ICAT Logistics is an agency-based freight forwarder providing transportation and logistics solutions, including the import and export of domestic and international freight by air, ocean and/or truck, along with customs and compliance management, customs brokerage and other specialty services. Today, the Elkridge, MD-based business employs more than 40 team members and has 19 agency partners in its network.
Among the services it provided to ICAT Logistics, Matrix Capital Markets conducted valuation advisory, the marketing of the business through the sale process and the negotiation of the transaction. The transaction was managed by David Shoulders, managing director and head of Matrix’s consumer and industrial investment banking group; William O’Flaherty, director at Matrix; Matt Oldhouser, CPA, an associate at Matrix; and Sahan Pandey, an analyst at Matrix.
“We believe this is an excellent outcome for all parties,” Shoulders said. “ICAT is an incredible business with an unparalleled commitment to its employees and boundless opportunity for growth. We are thrilled for Rick and his new partners and are excited for their continued success.”
“This marks Matrix’s second logistics M&A transaction of 2021,” O’Flaherty said. “We remain focused on expanding our industry coverage and expertise to continue providing market-leading advisory services to our clients. We appreciate the trust Rick and his team placed in us and are honored to have assisted in this important advisory assignment.”
“I have been impressed with Matrix at every stage in this process,” Rick Campbell, founder and CEO of ICAT Logistics, said. “They have shown integrity and professionalism throughout the engagement and I am so grateful for their efforts. I have no doubt they found the best partnership for the company and our employees.”
Company management, led by Campbell, built ICAT Logistics and its agency system over the last 30 years before deciding to partner with KCM Capital Partners. ICAT Logistics will remain under the guidance of its current leadership team.
“We are excited to partner with KCM,” Campbell said. “They share our core values and vision for accelerating the growth of the business while maintaining the strong relationships with our employees, customers, agency partners and transportation vendors. Since starting the company, our philosophy has been one of teamwork and transparency, and KCM’s approach is rooted in these same principles. I’m confident they can provide the financial and strategic resources to accomplish our future growth objectives.”
“Rick has built an extremely strong and value-added business model at ICAT, with a differentiated network of agency partners who, alongside the company’s operations from Baltimore, provide best-in-class customer service and superior freight forwarding solutions on a global basis,” Emmett Mosley, a partner at KCM Capital Partners, said. “Particularly in today’s environment where supply chains face meaningful constraints and headwinds, ICAT has consistently distinguished itself as a creative, reliable and trustworthy partner to its customer base, enabling the successful and expedient shipment of valuable cargo around the world. We look forward to building on ICAT’s strong foundation by providing the resources to accelerate market growth through expansion of the company’s agency network and strategic acquisitions.”
“We are thrilled to welcome Rick and the ICAT team into the KCM family and appreciate the capital support provided by our partners Lightspring and Midwest Mezzanine in this important transaction,” Derek Ferguson, a partner at KCM Capital Partners, said. “We look forward to executing our strategy together with them and company management.”
Williams Mullen served as legal counsel for ICAT Logistics on this transaction, and Katten Muchin Rosenman served as legal counsel to KCM Capital Partners.
