MGM Transport Extends Reach As Part Of CF Holding Company

Furniture World News

MGM Transport Corp. announced it has become a subsidiary of the CF Holding Company, Inc. (“CF”) (a subsidiary of Harbert Private Equity Fund II, LLC), a furniture transportation group consisting of Caldwell Freight Lines, Inc. and Foothills Trucking Co., Inc. Edward Massood, President of MGM Transport Corp. is excited about the move, noting “MGM’s customers are the big winners in this decision. We have a responsibility to our customers not only to remain on the leading edge of technology, but also to be constantly innovative in how we do business.” Massood also pointed out that, “by aligning with CF, not only will MGM’s customers continue to receive all the innovative services we are known for; they will now also experience the benefits of a much larger coverage area.” Dave Brenner, Chairman and CEO of CF is confident that, “by adding MGM Transport Corp. with its strength and reputation for innovation and technology, and its dedication to leadership in logistical operations, CF is positioned to become the strongest specialized furniture carrier group in North America.” Brenner points out that, “it certainly isn’t just our size that will make this group a powerhouse in the industry. Our collective customers can expect seamless operations, more points of pickup and delivery, more warehousing and distribution footage, as well as a larger coverage map…we really don’t see anything but a win-win.” With the acquisition of MGM Transport, CF is now poised to be the premiere specialized home furnishings carrier in the country. From the container, to the customer’s door, we believe that every shipment is a reflection of our commitment to “world-class” service. It is our firm belief that, while each of our subsidiaries is the very best in delivering quality and service to its individual customer base, CF will quickly prove itself greater than the sum of its parts. Massood noted “Everyday our carriers track and deliver 24,000 pieces of furniture for some of the finest manufacturers and retailers in the industry. With combined fleets consisting of 652 power units, 1760 trailers, our carriers log over 49,000,000 miles annually while covering areas from the Northeast to the West Coast, from Canada to Florida.” MGM Transport Corp.’s leadership, management, employees and assets will remain intact. The move will take advantage of operational synergies, while building on the respective strengths of each company to create a specialized furniture transport network that will rely on competencies, not competitiveness. “We are all still individual operating companies, who will continue to deliver transportation solutions and services for our respective customers”, notes MGM’s Massood. “The only change in that respect will be the seamless integration of extended coverage areas, a larger set of capabilities and services, continuity of IT networks, and the financial stability of our combined resources. We are just making the furniture transportation business better.” The addition of MGM to the CF group provides warehousing and home delivery opportunities for all CF companies. It is anticipated that the combined CF companies will have annualized revenues in excess of $120 million. About Harbert Private Equity Fund II, LLC Harbert Private Equity Fund II, LLC (“HPEFII”), recently acquired a majority interest in CF. HPEFII, is a private equity fund based in Birmingham, Alabama, with over $180 million in committed capital. According to Dave Brenner, CF’s Chairman and CEO, “We are excited about the new relationship with HPEFII because it provides us access to additional capital for growth as well as seasoned business professionals to assist us in our growth plan. Our company has had a history of substantial growth in the past and we look forward to continuing that tradition with the help of HPEFII.” HPEFII is sponsored by Harbert Management Corporation, an Alabama Corporation (“HMC”). HMC was formed in 1993 by Raymond J. Harbert and has since become a leading alternative asset management firm with more than $10 billion in assets and committed capital under management. HMC serves foundations, endowments, funds of funds, pension funds, financial institutions, insurance companies, family offices and high net worth individuals. HMC, headquartered in Birmingham, Alabama, maintains other offices in New York; Richmond, Virginia; Nashville, Tennessee; and London, United Kingdom.