March 6, 2014

Wind Point Acquires Majority Stake in Dicom Transportation Group

Wind Point invests in new transportation and logistics platform

Wind Point Partners today announced an investment in a new platform company, Dicom Transportation Group. Headquartered in Montreal, Quebec, Dicom is a leading provider of business to business expedited transportation services. The company offers a complete range of small parcel courier, less-than-truckload (LTL) and truckload transportation services as well as a full suite of logistics and transportation management solutions (TMS). Dicom operates under the Dicom Express, GoJiT and JiT24.7 brands and generates approximately $175 million in annual sales.  

Wind Point invested in Dicom in partnership with Scott Dobak, who will join the company as CEO, and current management. Scott has 28 years of experience in the transportation industry and was most recently President of RoadRunner Transportation’s LTL and TMS segments, a $775 million P&L. Prior to Roadrunner, Scott served for over 20 years with YRC Corp, a leading LTL carrier operating in the United States, Quebec and Ontario. Scott replaces retiring Dicom co-founder and CEO Peter Overing, who successfully led the business from its founding 40 years ago. All other members of management, including president Pierre Poliquin, will remain with the business and will continue to maintain a significant ownership stake in Dicom.

Joining Wind Point and Scott on the Dicom board of directors are Rick McClelland, Joe Lawler and Tom Schmitt. Rick McClelland, who will serve as chairman, is the former CEO of Dynamex, a $480 million small parcel courier company operating across Canada and the United States. Joe Lawler is the former CEO of ModusLink Global Solutions, a $840 million provider of global supply chain services. Tom Schmitt is the former CEO of Purolator, a $1.6 billion provider of freight and parcel delivery services in Canada. 

"Scott’s impressive track record of driving growth, the incumbent team’s strong operational talents, and our board’s strategic vision make for a powerful combination to create value."

Konrad Salaber, Principal

Konrad Salaber, a principal at Wind Point, commented, “Scott’s impressive track record of driving growth, the incumbent team’s strong operational talents, and our board’s strategic vision make for a powerful combination to create value. We are excited to be partnering with this impressive team and look forward to growing Dicom both organically and through a robust acquisition program.”

Scott Dobak, CEO of Dicom, stated, “I feel fortunate to have the opportunity to join and lead such a strong organization and I am very excited to once again manage a business in Quebec. I look forward to working with everyone on the Dicom team to execute the growth opportunities we’ve identified and to continue to provide Dicom’s tens of thousands of customers with excellent service and value.”

Dicom’s acquisition program focuses on acquiring courier, LTL and TMS providers in Quebec, Ontario and the United States. In addition, Dicom is seeking third party logistics (3PL) providers who manage transportation, logistics and supply chain functions for businesses in Canada and the United States. Acquisition targets will also include carriers and 3PL providers who manage and facilitate cross border trade among Canada, the United States and Mexico.

Financing for the transaction was co-led by Fifth Third Bank and Mouvement des caisses Desjardins and also included Banque Laurentienne and BBVA Compass. Kirkland & Ellis LLP served as legal advisor and KPMG LLP acted as a transaction advisor to Wind Point.