NEW YORK — An affiliate of ZS Fund L.P., the private equity firm and majority owner of Transervice Logistics Inc., has acquired dedicated contract carriage company Lily Transportation Corp.
“The transaction increases the scale of services and resources that Transervice and Lily bring to the marketplace with the combined strength of more than 2,600 employees (more than 1,750 drivers) in more than 185 North American locations,” a Transervice news release stated.
The increased scale is concentrated in the companies’ dedicated contract carriage and freight brokerage offerings, which are in addition to the contract maintenance and full-service leasing services offered by Transervice.
Gregg Nierenberg, president and chief executive officer of Transervice, will also serve as president & CEO of Lily, the news release noted.
Alex Lafaras, executive vice president and chief financial officer of Transervice, will also assume this role for Lily.
“Our investment in Transervice Logistics 16 years ago has been a very successful one due to the company’s ability to provide outstanding service to its customers,” said Bob Horne, managing [artner of ZS Fund L.P. “Lily’s experienced and knowledgeable operating executives have exhibited this same customer-centric approach, which is what attracted us to the company, and we look forward to the best practices of each company being shared with the other.”
John Simourian II, Lily’s president and CEO, said of the acquisition: “ZS Fund’s well-earned reputation in our industry as a private equity group looking for long-term appreciation, while allowing existing management teams to lead their companies, led me to choose ZS as Lily’s financial partner.”
Simourian continued: “I have every confidence that Gregg Nierenberg is the right leader to ensure Lily’s continued growth. He has been a distinguished leader at some of the largest companies in our industry, and he respects and embraces our proud heritage and the exceptional customers and associates who have made us the great company we are today. While I will no longer be involved in Lily’s day-to-day operations, as Chairman of Lily and a board member and investor in Lily and Transervice, I will be fully engaged in providing support and guidance to Lily’s new leadership.”
One owner, two separate companies
Both companies said that customers can expect business as usual, as Transervice and Lily will be united under one owner and continue to operate as separate companies. Each will retain their independent corporate names and separate field and management teams.
According to Nierenberg, “this dual-brand approach will create more opportunities for customers given the strong cultures already present in both companies known for their customer focus, empowered managers and flexible, agile approach. These are differentiators we will continue to embrace and promote.”
Nierenberg also said he expects the transaction to provide more flexibility when matching prospective new customer needs and locations with each company’s strengths.
The two companies now have an aggregate of 2,600 employees, including more than 1,750 drivers for dedicated contract carriage services, in more than 185 locations and manage approximately 27,000 pieces of equipment.
“Transervice and Lily’s cultures and business approaches are remarkably similar,” Nierenberg said. “Both companies have many very long-standing customer relationships. We value these partnerships and will continue to give our customers the white glove touch. Every customer is provided with a senior executive point-of-contact to ensure responsive, efficient management in their day-to-day operations.”
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