Red Arts Capital has announced the acquisition of Partners Warehouse, a provider of warehousing and transloading services.
Partners Warehouse, headquartered just outside of Chicago, has eight buildings in Illinois totaling approximately 1 million square feet. Cross docking, pick-and-pack, container unloading, and rail car loading and unloading are among its warehousing activities. It caters to the construction, lumber, metallurgy, automotive, and consumer products industries.
The headquarters of Partners Warehouse are located near the entrance to one of BNSF’s (NYSE: BRK.B) principal rail and intermodal yards. Every year, the organization handles freight from thousands of rail cars and containers.
The transaction’s terms were not disclosed.
“Our country is confronting a tremendous scarcity of warehouse capacity,” said Nick Antoine, co-founder and co-CEO of Red Arts Capital, in a news release. “We believe Partners is ideally positioned to supply much-needed warehouse capacity as it grows near Chicago’s strategically important inland port.”
The sale was the latest in a series of deals for the Chicago-based middle-market private equity firm focused on supply chain and logistics investments.
In June, the company purchased Logistics, a provider of packaging and supply chain services. It was also a member of the ownership group that sold Midwest Motor Express to Knight-Swift (NYSE: KNX) for $150 million at the end of 2021. This was Knight-second Swift’s investment in the LTL space after purchasing AAA Cooper Transportation a year ago.
In addition to Canadian 3PL Radius Logistics, which it bought in January 2021, and LTL supplier Sunset Pacific Transportation, Red Arts Capital has a diverse portfolio.
The Red Arts Capital investment in Partners Warehouse will go beyond the original purchase.
“The Partners Warehouse holding business now employs about 150 individuals.” “We expect to roughly double the platform’s headcount and square foot capacity this year alone,” said Chad Strader, co-founder and CEO of Red Arts Capital.
