Livingstone advises L.T. Harnett on sale to A&R Logistics, portfolio company of Wind Point Partners

Livingstone is pleased to announce the sale of L.T. Harnett (“LTH” or “the Company”), a provider of bulk liquid transportation and logistics services to the chemical industry, to A&R Logistics, Inc. (“A&R”), a portfolio company of Wind Point Partners (“Wind Point”).  Livingstone was the exclusive financial advisor to LTH.  The terms of the transaction are undisclosed.

A second-generation family-owned business founded in 1944, LTH provides over-the-road bulk transportation solutions to leading North American liquid chemical producers and diversified industrial companies via a network of five strategically located terminals in Ohio, Indiana, and Illinois.

A critical link in the chemical manufacturing value chain, the Company is well-known for its long history of providing outstanding and reliable service, consistently sustaining a superior safety record, and maintaining robust driver recruitment and retention due to a strong culture cultivated through decades of experience.

LTH’s leadership team will join A&R at the time of the transaction, and the Harnett family will become a major independent investor committed to its ongoing success.

Dr. David Harnett, President and CEO of LTH, commented, “Livingstone provided flawless transaction execution in advising our family on the sale process in the middle of a global pandemic.  It took tremendous conviction to market the Company during such a disruptive economic period, and Livingstone delivered a competitive process with a high caliber set of interested parties.  We are thrilled to have found a world-class partner in A&R to carry on LTH’s legacy.”

”We are pleased to welcome the LTH team to A&R, and we congratulate Dr. Harnett and his team on the strong business they have built at LTH,” stated Mark Holden, CEO of A&R.  “We are delighted to expand our liquid chemical capabilities, geographic coverage, and scope of services with the acquisition of LTH.”

Karl Freimuth, Partner at Livingstone, commented, “We are proud to have advised the Harnett family on a successful transaction.  Livingstone listened to our client’s objectives, took stock of current M&A market conditions and buyer receptivity, and commenced a highly targeted strategic buyer-focused process in early May.  56% of buyers who received materials submitted competitive offers, and we ultimately closed the transaction in less than 100 days following the process launch.  Our team capitalized on the quality of the LTH asset, scarcity value from an acute decline in middle-market deal volume, and a buyer universe with a continued appetite for acquisition growth despite the ongoing pandemic.  The LTH deal is another example of Livingstone’s established track record of trading middle-market businesses to strategic acquirers.”

“The LTH transaction highlights Livingstone’s commitment to delivering outstanding outcomes to family- and entrepreneur-owned clients.  It was a pleasure working with Dr. Harnett and his family, and we congratulate them on their next chapter with an excellent partner in A&R,” stated Patrick Hopkins, Director at Livingstone.

A&R Logistics Holdings, Inc. is a leading supply chain services company providing dry and liquid bulk transportation services, warehousing & packaging, distribution, export, in-plant, and third-party logistics solutions to numerous multinational companies within the chemical industry.  A&R provides a comprehensive suite of services including over-the-road transportation, transloading, packaging, warehousing, and end-to-end outsourced transportation management through a nationwide network of facilities, a combination of Company-owned equipment and owner-operators, and a non-asset based transportation management division.

Wind Point Partners is a Chicago-based private equity investment firm with approximately $3 billion in assets under management.  Wind Point focuses on partnering with top caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation.  The firm targets investments in the consumer products, industrial products, and business services sectors.  Wind Point is currently investing out of Wind Point Partners IX, a fund that was initiated in 2019.

LTH is Livingstone’s 126^th transaction completed since 2018, and the 51^st global industrial transaction completed in the same timeframe following the sales of Cummins Allison to Crane, Capital Southwest’s portfolio company, SpotSee, to Harbour Group, Royal Truck Body to Shyft Group, and Artistic Carton to Graphic Packaging.

Ice Miller LLP served as legal counsel while Hill, Barth & King, LLC and KSM Business Services, Inc. provided transaction-related accounting services to LTH.  Kirkland & Ellis LLP served as legal counsel and KPMG provided transaction-related accounting services to A&R.