Red Arts Capital Completes Add-on Acquisition of FLEX Logistics
The private equity firm continues to demonstrate commitment to the supply chain and logistics industry by acquiring a 3PL mainstay through portfolio company, Partners Warehouse
CHICAGO–(BUSINESS WIRE)–As part of its continuing effort to acquire premier supply chain and logistics companies, Red Arts Capital has announced that its portfolio company, Partners Warehouse, recently completed the add-on acquisition of FLEX Logistics, a third-party logistics (3PL) company located in Southern California. FLEX’s deep warehouse management experience across multiple industries provides its customers with more time to focus on their core strategies by making their West Coast warehousing and distribution requirements easier and more cost-effective by utilizing its 3PL warehouse services.
Headquartered in Eastvale, California, FLEX holds nearly 900,000 square feet of warehousing space and services customers in the consumer products, food and beverage, spirits, and automotive industries. This well-facilitated organization will continue to serve as a valuable addition to Red Arts Capital’s portfolio of companies. The 3PL market in the U.S. is estimated at $238 Billion in the year 2022, which currently accounts for a 24.7% share of the global market1.
“Having an established, successful company like FLEX Logistics join the greater Red Arts team is incredibly exciting,” says Nick Antoine, Co-founder, Co-CEO and Managing Partner of Red Arts Capital. “Geographically, Southern California plays a massive role in the North American supply chain system and being able to work with FLEX on solving some of the recent issues we’ve seen in that region is a great opportunity for us.”
The transaction marks another successful investment for the firm’s inaugural institutional commingled private equity fund vehicle, Red Arts Capital Opportunity Fund I, L.P. In August, the firm announced the acquisition of Partners Warehouse, a leading third-party logistics provider with warehousing, value-added services, and transportation offerings.
“We are excited to be partnering with Red Arts Capital,” says Carl DeTorres, CEO of FLEX Logistics, “and to be joining the Partners Warehouse team. FLEX Logistics has always been customer-focused, and it was important to find partners that aligned with our values. We look forward to working with them as we continue to grow our business.”
Red Arts Capital was formed in 2015 by Co-founders, Co-CEOs, and Managing Partners, Chad Strader and Nick Antoine. The firm specializes in private equity investments in supply chain and logistics-related businesses. Red Arts Capital has made significant investments in the supply chain sector over the past half year, including Partners Warehouse, Coregistics, Sunset Pacific Transportation, Radius Logistics, and now FLEX Logistics. These investments demonstrate Red Arts Capital’s commitment to the sector and its ability to drive growth and innovation. Red Arts also executed the sale of the over century old Midwest Motors Express and Midnite Express to trucking industry titan Knight-Swift Transportation Holdings back in December for $150M.
- “Third Party Logistics (3PL) – Global Market Trajectory & Analytics.” Global Industry Analysts, Inc. July 2022.
About Red Arts Capital
Based in Chicago, Illinois, Red Arts Capital is a leading investment firm focused on supply chain-related, transportation, and logistics businesses. Red Arts Capital seeks to partner with and invest in privately-owned, primarily family-owned, and multi-generational businesses with solid business fundamentals and a strong track record and reputation. With sector expertise and a commitment to stewardship and excellence, Red Arts Capital’s approach earns the firm a trusted seat at the table with portfolio companies, investors, and partners. For more information about Red Arts Capital, please visit www.redartscapital.com.
About FLEX Logistics
FLEX Logistics is a privately-owned, 3PL Warehouse company located in Southern California. Flex delivers customers’ products to the market, on time, all the time, since 1984. Flex’s goal is to give businesses more time to focus on their core strategies by making their West Coast warehousing and distribution requirements easier and more cost-effective by utilizing Flex’s 3PL warehouses and valued added services. To learn more about FLEX Logistics, please visit https://flexlogistics.com.
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