Platinum Equity Acquires HomeDirect; Combines Business With MXD Group
Move Positions MXD Group as Leader in Final Mile Delivery
LOS ANGELES, Calif., September 26, 2013-- Platinum Equity announced today it has acquired HomeDirect, Inc. from Transportation Resource Partners, LP (TRP) and is combining the business with Platinum Equity portfolio company MXD Group.
HomeDirect was established in 1995 as part of the Bekins Company and has been owned by TRP since 2005. MXD Group (formerly Exel Direct, Inc.) was acquired by Platinum Equity from Exel Inc., a subsidiary of Deutsche Post DHL, in May 2013 and the business was rebranded last month.
"Bringing together the people, technology, customers and third-party relationships from our two companies creates a powerful combination," said MXD Group CEO David Vieira. "Joining forces with HomeDirect provides us with the market density and assets to improve transit times and diminish touches, resulting in improved quality and service for our customers."
Both MXD Group and HomeDirect specialize in high-touch "white glove" delivery services for North American retail brands across a variety of consumer segments.
"Throughout the U.S. and Canada, manufacturers, retailers and their respective customers will experience real benefits in terms of speed, consistency of delivery experience and access to a complete suite of offerings from a single provider," said Brian Gallagher, president of HomeDirect.
The combined business will offer a fuller range of services including dedicated, line haul, reverse logistics, warehousing and distribution, deluxing and assembly.
Each business brings its own distinct expertise to the combination: MXD has a broad base of dedicated blue-chip customers and strategically located hubs; HomeDirect has customer-friendly technology that simplifies the order and tracking process critical for e-commerce.
Bryan Kelln, Platinum Equity Partner and President of Portfolio Operations, said the transaction demonstrates Platinum Equity's commitment to MXD Group's growth.
"Completing a transformative transaction with HomeDirect less than six months after acquiring MXD Group demonstrates that we are serious about establishing a leader that provides a broad spectrum of delivery solutions," said Mr. Kelln. "We will continue exploring opportunities to grow the business and expand its reach."
MXD Group (www.mxdgroup.com) specializes in final mile delivery logistics solutions for North American retail brands across the consumer electronics, furniture and appliance segments. The business coordinates and executes non-conveyable product deliveries utilizing a nationwide network of professionally managed and certified independent contractors and agents. MXD is a leader in white glove home delivery and retail replenishment solutions and services.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 150 acquisitions. The firm recently completed raising Platinum Equity Capital Partners III, a $3.75 billion buyout fund focused on investing in businesses that can benefit from Platinum Equity's operational expertise.
Downloadable Venture Capital Database