Cardinal Logistics Management Inc. said today it was acquired by private investment firm Centerbridge Partners LP for an undisclosed sum. Cardinal provides a wide range of logistics services but is best known for being a dedicate contract carriage provider in the United States.
"This transaction represents an important step forward in Cardinal's history as it will provide us with significant financial flexibility and the benefits of a strategic partnership with Centerbridge," Tom Hostetler, chief executive officer of Cardinal Logistics, said in a statement.
In the same statement, Centerbridge executives emphasized Cardinal's strong position. "We are very excited to be partnering with such a strong leadership team and organization as we work together to realize the many growth opportunities before us," said Will Manuel, senior managing director of Centerbridge. "We are acquiring the business with no debt on the balance sheet in order to ensure maximum financial and operating flexibility."
Under a dedicated contract model, a trucker dedicates equipment and drivers to serve an individual shipper, allowing the shipper to lock in rates and capacity with the carrier for a multi-year period.