New York-based Arsenal Capital Partners has hired John Dupuy, formerly an executive at relocation, moving and logistics company SIRVA, as an operating director. Dupuy will work on deal sourcing and valuation in the transportation and logistics sector, as well as providing support for portfolio companies’ management teams.
“There has been a lot of activity in that sector over the last two years,” Dupuy said. “But we believe there are still a lot of interesting companies out there in the lower middle market.”
At SIRVA, Dupuy ran the company’s domestic and international moving and logistics businesses. Before, he was president of Moving Services and Specialized Transportation North America, where he ran Allied Van Lines and North American Van Lines, as well as North American Logistics.
At Arsenal, Dupuy said he will seek out companies that provide highly specialised services or high value-added work, such as warehousing companies that also provide assembly and packaging services for the products stored in their facilities, or logistics companies provide consulting services, help their customers select carriers, and negotiate contracts on behalf of their customers.
These types of transportation services are typically asset light and rely on outsourcing, in contrast to what Dupuy called the “for hire transportation sector”, where companies own and operate their own vehicles.
In contrast to the “for hire” transportation sector, the value-added, specialised transportation services sector is less developed, and companies in this sector tend to have higher margins, Dupuy said.
Arsenal invests in middle market companies in the healthcare and specialty chemicals and materials sectors. The firm was founded in 2000, and raised its first, $300 million (€223 million) fund in 2003. Arsenal is currently investing its second fund, which closed on $500 million in 2006. That fund has made one acquisition to date: in January the firm bought a majority stake in commercial refrigeration provider Source Refrigeration for an undisclosed amount.
In March the firm hired two other operating directors to bolster its manufacturing and healthcare expertise: James Kalish of manufacturing firm Parker Hannifin and Austin “Chip” Broadhurst of venture capital and executive search firm Calchas Group.