Cornerstone Logistics, Inc.
has been acquired by
Contrans Income Fund
Corporate Finance Associates
Cornerstone Logistics is a specialty non-asset based carrier, providing complete transportation solutions for high value industrial, electronic and retail shippers, primarily from the US into Canada. With 2 strategic locations, each on either side of the US-Canadian border, the company has an enviable track record of above average gross margins, world class customers, and an impeccable service record. When they hired CFA in late 2006, the company was growing in excess 30% year over year with revenues approaching $24 million.
After narrowing the field to seven strong offers, Contrans Income Fund emerged as the likely suitor. Contrans is one of Canada’s most consistently profitable transportation companies, with annual revenues of $500 million.
Contrans felt Cornerstone gave them the management depth to improve profit margins, diversify the customer base, add capacity in select routes and move freight on to their assets.