Group Transportation Services merges with MESCA Freight Services, LLC
Washington, D.C., September 2009 — Thayer | Hidden Creek announces its investment in Group Transportation Services (“GTS”) to support its merger with MESCA Freight Services, LLC (“MESCA” or the “Company”). Based in Hallowell, ME, MESCA is a non-asset based third party logistics (“3PL”) provider offering primarily volume discounts on less-than-truckload freight, truckload brokerage services, and freight bill audit. The Company serves over 8,000 clients, primarily small-to-mid-market manufacturing and distribution companies based in the Northeastern United States. MESCA is led by a highly-seasoned senior management team with an average of over 25 years of industry experience. Under their leadership, the Company has developed a proprietary, user-friendly, web-based IT system that allows clients to select carriers, dispatch and track shipments, generate invoices, and perform improvement analysis through a custom reporting feature. MESCA’s scalable business model requires minimal capital investment and generates strong free cash flows and returns on invested capital.
MESCA also represents a compelling fit with GTS. The Company substantially enhances GTS’ geographic reach with a sales force nearly four times larger than GTS’ and a presence in the Northeast and West Coast. MESCA brings a complementary service line to GTS and is capable of cross-selling GTS’ full outsourced transportation management system as a more value-added service. GTS and MESCA both target an under-penetrated landscape of small to mid-size shippers who increasingly recognize the financial and operational benefits gained from outsourcing non-core logistics functions to a 3PL. The management teams of both GTS and MESCA are energized about the relationship and the opportunities to drive profitable growth.