Fenway Partners acquires Gemini Traffic Sales, enters termperature-controlled market

Jeff Berman, Senior Editor -- Logistics Management, 2/13/2007

NEW YORK—Private equity firm Fenway Partners said yesterday it has acquired a major interest in Gemini Traffic Sales Inc., a regional less-than-truckload (LTL) and nationwide full truckload carrier based in Edison, New Jersey.

This acquisition is the 17^th one Fenway has made in the transportation and logistics sectors since 2000. Financial terms of the transaction, which was made official on February 9, were not disclosed.

Gemini’s main area of expertise is transporting time- and temperature-sensitive products, such as food and beverages, flavorings and ingredients, pharmaceuticals, and healthcare products. The company was founded in 1985 and is comprised of fleet of 250 company-owned tractors and owner-operators and 400 trailers. Gemini provides various temperature-controlled freight services for more than 1,000 customers, including LTL consolidation and distribution, full truckload carrier capabilities, and brokerage and warehousing. Along with its headquarters in Edison, New Jersey it has terminals in Los Angeles, Dallas, and Atlanta.

Fenway Partners managing director Marc Kramer told Logistics Management the firm has been following the temperature-controlled niche of the transportation and logistics marketplace for more than a year and said a “compelling opportunity” exists to grow and industry-leading service provider with this acquisition.

“We have spent a significant amount of time with [Gemini founder and CEO] Harry Winrow and respect the careful manner in which he has grown the business,” said Kramer. “We believe that Gemini’s capabilities and service standard can be applied more broadly in the marketplace with our experience in building great business franchises, willingness to invest in the organizational capabilities and ability to identify, execute and integrate attractive acquisitions.”

Kramer added that Fenway believes the temperature-controlled market has room for a service-oriented national competitor. And with Fenway’s network of relationships, capital and experience in providing superior customer experiences, he said that the acquisition will serve the industry well and help Gemini grab market share.

As for how this deal will impact shippers and existing customers, Kramer said they can still expect the same level of service and support from Gemini. But he added that Gemini now has access to additional resources and investment to expand the service offering and geographic reach.

“Gemini wants to grow in partnership with these companies and shippers and now has the resources to more actively invest in meeting their future needs,” said Kramer.

In terms of improving Gemini’s overall efficiency and operations, Kramer said that Fenway will apply its expertise in transportation and logistics, including a fertile pipeline of potential add-on acquisitions, to expand Gemini’s footprint and service offerings, investing in the operating platform to support future growth and bringing in additional operating executive talent to support Gemini’s strategic agenda. He added that Fenway has named Dan Sokolowski, CEO of Panther Expedited Services, to be chairman of Gemini.

On the personnel side, Kramer said each of Gemini’s founders remains a significant investor in the business and the current team of managers will stay in place. He also noted that employees and geographic locations of Gemini will remain as they are today.

“We are likely, however, in partnership with Harry Winrow, who will remain CEO, to invest in additional operating resources and ultimately additional geographic locations from which to service our customers,” said Kramer.