Auxo investment partners close sale of M/G Transport Services to Maritime Partners

Auxo Investment Partners (www.auxopartners.com), Michigan’s leading lower middle market private equity firm, today announced a successful exit from its investment in M/G Transport Services (M/G) through a sale to Maritime Partners. Terms of the transaction were not disclosed, and completion of the acquisition followed HSR regulatory review.

Acquired by Auxo in November 2017, M/G is a leading provider of mission-critical marine transportation services in the Lower Mississippi River and along the West Canal to Houston, Tx. With its fleet of over 300 dry cargo barges, M/G specializes in the movement of petroleum coke, sugar, barite, and a variety of other materials and commodities.

M/G flourished under Auxo’s ownership, as Auxo partnered with M/G’s management team to foster a renewed growth orientation. Leveraging Auxo’s value creation/portfolio company operations team, M/G made strategic investments in their barge fleet, developed advanced analytics to drive better insights into fleet utilization and spot market opportunities, and secured attractive new business wins in the company’s major trade lanes. What’s more, M/G’s management team invested alongside Auxo – and achieved significant financial returns – through their investments and participation in Auxo’s incentive stock ownership program.

“This is an ideal outcome for all parties. Maritime Partners gets a great business with a strong management team, M/G’s management team gets a terrific new owner – an important consideration for us – and we at Auxo deliver an incredible return for our investors,” said Auxo Managing Partner Jeff Helminski. “The result is further evidence of our long-term, collaborative approach that enables leadership teams and reorients company focus around strategic, high-value growth.”

M/G will continue to operate under the M/G brand and as a standalone entity, and the members of the management team will continue in their current roles.

"We congratulate Maritime Partners on the closing of this acquisition. I am excited by the capabilities that Maritime Partners brings to M/G, including the ability to elevate the already high level of service and exceptional value M/G delivers to its customers. This transaction is a great result for M/G customers, employees, shareholders, Maritime Partners, and Auxo" said Greg Binion, Executive Chairman of M/G.

"We are thrilled to complete the acquisition of M/G, which is a natural complement to our platform given the contractual nature of M/G's business,” added Bick Brooks, co-founder, and CEO of Maritime Partners. "The M/G fleet also further diversifies the vessel capacity solutions we are able to offer the Jones Act community."

RBC Capital Markets, LLC served as the exclusive financial advisor to M/G. Miller Johnson LLP, Barnes & Thornburg LLP, Winston & Strawn LLP, and BDO USA, LLP served as M/G's advisors. Reed Smith LLP served as legal counsel to Maritime Partners. PNC Business Credit provided financing to Auxo throughout its ownership of M/G, and Auxo facilitated their continuation as the debt partner to M/G under Maritime Partners’ ownership.

A Long-Term, Collaborative Approach

Since its inception, Auxo has made 15 acquisitions and continues to actively seek partnerships with companies that meet the following investment criteria:

• North America-based
• Manufacturing, industrial, value-added distribution, or business services industries
• EBITDA (cash flow) of $2-$20 million
• Owner-operators seeking retirement, family succession planning solutions, or existing teams seeking to grow their businesses
• Prefer majority-control investments but will consider select minority-partner opportunities