Bonsai Capital (“Bonsai”), a firm backed by a prominent group of family offices, recently announced the acquisition of DC Logistics, a Third-Party Logistics (3PL) business based in the Inland Empire and focused on Less-than-Truckload (“LTL”), warehousing, and inventory management. With a search that began in March 2020, Bonsai Capital specifically sought out a stable, profitable company with potential for operational efficiencies and institutionalization targeting the growing transportation, warehouse, and logistics industry before selecting DC Logistics.
In 2021, 3PL was a $232 billion industry in the U.S., according to market research firm Armstrong & Associates, Inc. The LTL component is a critical segment of the logistics sector, as shippers are moving more and smaller palletize shipments to locations closer to the final fulfillment point for e-commerce customers.
Founded by Robert, Jr., Andrew, and Edward Pier in 2006 and headquartered in Jurupa Valley, CA, DC Logistics has an extensive profile of services readily available that include warehousing and distribution, full truckloads, less-than-truckloads, custom invoicing and auditing, optimization and engineering solutions, as well as packaging and shipping supplies. The company has over 200 employees, including 84 drivers, a fleet of 130 trucks, five rail spurs, and 10 distribution facilities that currently occupy 600,000 square feet with the ability to flex up to 1,000,000 square feet of space available for warehousing, distribution, and supply chain management needs.
“We were highly selective in our search to find not only a company with outstanding growth potential in a thriving industry, but one that operated in a region familiar to us,” said Bonsai Chief Executive Officer Judas Castro. “We also sought out strategic investment partners who not only shared our investment thesis, but who could provide valuable, U.S.-based real estate expertise to help maximize the opportunities we have identified. We hit the mark on all accounts with DC Logistics and a significantly aligned investor group.”
Funding for the acquisition was provided by a sophisticated group of investors, including Crow Holdings, a leading real estate investment and development firm.
“Crow Holdings has a strong long-term track record of success and an established national network in the industrial real estate industry. Investing in fundamentally sound logistics companies like DC Logistics is a natural extension for us,” said Crow Holdings Chief Investment Officer Michael Hyun. “We are excited to partner with high-quality operators in Bonsai Capital and the Pier Family.”
DC Logistics currently operates in California, Oregon, Nevada, Arizona, Colorado, and Louisiana, and the new management team sees immediate expansion opportunities in Texas and Florida, and, later, in Utah and New Mexico. The team anticipates uninterrupted business continuity for employees, vendors, and suppliers as a result of the acquisition, as it looks to enhance existing services capabilities while fulfilling identified opportunities for organic and inorganic growth.