Yucaipa makes a logistical purchase

Los Angeles investor Ron Burkle’s private equity firm has completed an estimated $300m deal to acquire Canada-based TDS Logistics, which services the auto industry.

The Yucaipa Companies, the private equity firm run by Los Angeles billionaire Ron Burkle, has acquired Canadian automotive logistics company TDS Logistics.

Though terms of the deal were not disclosed, industry sources peg the purchase at an estimated $300 million (€246 million).

TDS Logistics provides solutions globally to monitor the flow of parts into automotive original equipment manufacturers (OEMs), including auto industry giants BMW, DaimlerChrysler, Ford, General Motors and Volkswagen. TDS plans to move its headquarters from London, Canada to the US.

Yucaipa partner Ira Tochner led the deal.

Yucaipa’s most recent acquisition in February involved the purchase of the bankrupt assets and operations of Piccadilly Cafeterias for a reported $80 million. Headquartered in Baton Rouge, Louisiana, Piccadilly serves home-style meals, cafeteria style.

That same month Yucaipa sold its stake in Irvine, California-based Golden State Foods, a supplier to hamburger giant McDonald’s, for a reported $110 million, tripling Yucaipa’s investment in little more than five years.

Founded in 1986, The Yucaipa Companies has completed mergers and acquisitions valued at more than $30 billion. Though the firm invests in the retail, logistics and manufacturing industries, Yucaipa is best known for executing a series of major grocery chain mergers and acquisitions. Indeed, Burkle, the son of a Claremont, California, grocery executive, initially built his fortune through the Ralphs chain of supermarkets, which became part of the nation’s largest such chain when it was sold to Kroger Co.