United Road used the acquisition route to expand its operations on Monday.
United Road, in partnership with its owners, The Carlyle Group, and other investors, announced the acquisition of Team Drive-Away (TDA) and its affiliates Driveaway USA and Fr8 Management from CID Capital.
Based in Olathe, Kan., TDA is a national non-asset-based commercial vehicle logistics provider specializing in matching professional drivers with moves of used and new heavy-haul Class 8 trucks for sellers and buyers as well as moves to reposition and optimize fleets. TDA handles 20,000 vehicles annually via a national network of more than 500 independent contractors.
Together with TDA, United Road said in a news release that it will move more than 4 million new, used and specialty vehicles in 2019.
Officials added that the TDA headquarters will remain in Kansas. Financial details regarding the acquisition were not disclosed.
“Team Drive-Away is a natural fit for United Road that further diversifies our business,” United Road president and chief executive officer Mark Anderson said. “TDA is a customer-driven business that brings new heavy haul capabilities to United Road.
“Its asset-light business model of partnering with trusted independent contractors combined with our geographic territories will bring new opportunities and new customers to our combined enterprise,” Anderson continued.
United Road explained that TDA’s non-asset based business model means neither TDA nor its independent contracted drivers own or lease any trucks. The company reiterated that transporting heavy equipment such as trucks, utility vehicles, or fire trucks is a specialty business. Class 8 heavy haul vehicles weigh 33,000 pounds or more compared to SUVs at 6,000 pounds.
The company noted TDA’s skilled contractors transport loads as singles, multi-level platform decks or tow-behind booms.
“Team Drive-Away and its affiliates are known, respected providers in the heavy vehicle drive-away space,” United Road executive chairman Kathleen McCann said. “Welcoming TDA to United Road expands our vehicle transport solutions, giving us the ability to move vehicles of every type, from light cars to heavy trucks, always with a commitment to doing so on-time, safely and damage-free.”
Headquartered in Romulus, Mich., United Road provides finished vehicle transport and logistics services from 90 locations throughout the U.S. and Canada. Combined, United Road and Team Drive-Away serve a broad range of customers, including manufacturers, resellers, commercial fleets, municipalities, rental agencies, dealers, auctions, web-based logistics firms and individuals, among others.
United Road has been a holding of The Carlyle Group’s U.S. Equity Opportunity Fund II since 2017.
Team Drive-Away, founded in 2007, was acquired by CID Capital in 2015. TDA and its affiliates, Driveaway USA and Fr8 Management, employ 45 professionals.