Red Arts Capital announced that it has partnered with Prudential Capital Partners and Brightwood Capital Advisors to acquire MME Inc. and its wholly owned subsidiaries Midwest Motor Express Inc. and Midnite Express Inc.
Financial terms of the transaction were not disclosed.
Founded in 1918, Bismarck, North Dakota-based Midwest Motor Express is a top 25 less-than-truckload (LTL) carrier operating 32 service centers throughout 16 states in the Upper Midwest and Northwest. The carrier utilizes marketing partnerships and other alliances to provide shipping service globally, including the United States, Canada, Europe, Asia and the Pacific Rim. The carrier uses its regional carrier partners to provide next- and second-day service on the majority of the lanes it serves.
Midwest Motor Express has 800 employees.
Based in West Fargo, North Dakota, Midnite Express Inc. offers dry van truckload (TL) and brokerage services throughout the continental U.S.
Combined, MME's subsidiaries generate more than $120 million in annual revenues. The two carriers have 431 power units according to the Federal Motor Carrier Safety Administration's SAFER website.
Specifically, Midwest Motor Express generated just north of $100 million in revenue with an operating ratio just below 94% in 2018. In the same year, the company's balance sheet was levered at 0.6x debt-to-equity. Below 1.5x is generally viewed as healthy.
Midwest Motor Express' capital expenditures are typically below $9 million on an annual basis.
Red Arts Capital is a supply chain- and industrial-focused investment firm based in Chicago. The firm partners and invests in mature largely family-owned, privately held businesses.
Prudential Capital Partners has invested more than $3 billion in over 100 companies since 2000. The group is part of Prudential Financial Inc. (NYSE: PRU).