MINNEAPOLIS, MINNESOTA – Quazar Capital Corporation is pleased to announce the sale of its client, Twin Modal, a Roseville, Minnesota-based company, to freightquote.com, an Overland Park, Kansas-based company.
THE COMPANY– Twin Modal provides multi-modal freight transportation and logistics services to manufacturers, wholesalers and retailers of general commodities throughout North America. A broad range of resources are used including intermodal, highway-truckload, less-than-truckload, expedited, logistics management, and warehousing services. Twin Modal has built a reputation as a leader in the transportation intermediary industry for delivering superior value, convenience and control to all of their customers. Without exception, Twin Modal has proved to be one of the best managed logistics companies in the United States.
THE SITUATION– Twin Modal was approached by a competitor with an offer to purchase the company. Quazar Capital Corporation was asked to validate this offer by locating and negotiating with other buyers to be sure the Company was receiving the best price for the members of the ESOP. After receiving a number of very reasonable offers, freightquote.com presented itself as the most desirable candidate. In a response from the President of Twin Modal, Chip Smith, regarding Quazar’s assistance with negotiations, Chip stated, “Bruce has street smarts. He was able to read what the buyers were trying to do in negotiations and lead us. It’s hard to quantify that kind of skill. He also proved that he knows his business when it comes to companies in the lower end of the middle market and that’s something that large Investment Banking firms cannot match.”
UNIQUE CHALLENGE– The unique challenge in this transaction deemed to be the levels of approval that were involved for every decision. With Twin Modal being an ESOP (employee stock ownership plan) not only did Quazar Capital Corporation have to satisfy the ESOP’s legal representation, The Board of Advisors, The Trustees but also the Officers of the company. All communications needed to be managed at every level; from clarifying the information received from the potential buyers to formulating a response to the offers. In the end, this was simplified due to the competence and professionalism of the Twin Modal management team.
THE RESOLUTION– This merger will allow the companies to diversify and strengthen their service offerings. In addition, freightquote.com plans to operate Twin Modal as a stand-alone subsidiary, allowing Twin Modal to retain their employees and their brand name. All in all, the employees of Twin Modal were able to cash-in at an advantageous stage in the game and were able to prove that ESOP’s can be a very lucrative opportunity. “This turned out to be a great deal for the employees, the company and the shareholders. Truly an ESOP success story,” commented Chip Smith, President of Twin Modal.