October 3, 2022

Frontenac Partners with Zipline Logistics to Accelerate Growth

Columbus, OH

Zipline Logistics (“Zipline” or “the Company”), a third-party logistics (3PL) provider, today announced a recapitalization in partnership with Frontenac, a Chicago-based private equity firm, to accelerate organic growth initiatives and pursue strategic acquisitions. Financial terms of the transaction were not disclosed.

Zipline Logistics is the only technology-enabled third-party logistics solutions provider in North America exclusively servicing the consumer-packaged goods sector. The Company’s uniquely qualified carrier network, world-class team of retail transportation experts, and state-of-the-art shipper intelligence tools maximize client revenue and gross margin by eliminating out-of-stocks through optimized, on-time in-full performance. The entire Zipline management team will remain in place following the transaction and maintain a significant ownership position in the Company.

“Zipline fits nicely with our vision of building a specialized 3PL with a differentiated technology platform and value proposition,” said Joe Rondinelli, Principal at Frontenac. “We’re thrilled to be partnering with Zipline. They are a growth-focused team that, combined with their proprietary technology platform, KanoPI, and deep brand and retail operational expertise, allows them to effectively manage the supply chain for their customers.”

Walter Lynch, CEO of Zipline said, “We are impressed with Frontenac’s excellent reputation in growing middle market companies. This, along with our shared cultural values and like-minded drive, makes our partnership a logical fit.”

Andrew Lynch, President of Zipline said, “At Zipline, we have always viewed ourselves as a consumer-packaged goods company that specializes in logistics. Partnering with Frontenac, who has a decades-long track record of building world-class consumer goods businesses, represents a fantastic opportunity to continue building on the incredibly unique and highly-valued logistics services platform that we set out to create 15 years ago.”

Additionally, the Zipline team recognized Frontenac’s executive-led investing approach to be the optimal fit for the Company for its next phase of growth. To that end, joining the Board of Directors at closing is industry veteran Don Maltby, who has over 35 years of experience growing transportation and logistics businesses, including as the former Chief Operating Officer of Hub Group.

“The team at Zipline has focused on providing world class customer service combined with leading edge technology. This combination along with a long track record of excellent execution has positioned Zipline to be an industry leader in providing excellent service and innovative solutions,” said Don Maltby. “We believe Zipline’s strong presence and experience in the consumer category will position them as a valued, innovative provider to meet the growing needs of its customers.”

“One really exciting benefit to our partnership with Frontenac is Don Maltby, who adds invaluable experience in building successful, shipper-focused technology-enabled platform solutions to our leadership team’s unique foundation of CPG logistics expertise. Together, we are primed to offer a best-in-class logistics experience to CPG brands across the industry spectrum,” said John Rodeheffer, COO of Zipline.

Greenberg Traurig, LLP served as legal counsel to Zipline Logistics. Winston & Strawn LLP served as legal counsel to Frontenac.

About Zipline Logistics

Zipline Logistics is a tech-enabled, asset-light third-party logistics (“3PL”) provider specializing in the food and beverage, consumer packaged goods and healthcare end markets. Zipline provides managed transportation and freight brokerage services across multiple modes of transportation including full truckload (“FTL”), less-than-truckload (“LTL”), dry van, temperature-controlled, rail and port. Ziplines leverages its proprietary transportation management system, KanoPI, to allow customers to manage and analyze transportation spend and enable Zipline employees to optimize order execution. For more information, please visit ziplinelogistics.com.

About Frontenac

Frontenac is a Chicago-based private equity firm. The firm focuses on investing in lower middle market buyout transactions in the consumer, industrial, and services industries. Frontenac works in partnership with established operating leaders, through an executive-centric approach called CEO1ST, which seeks to identify, acquire, and build market-leading companies through transformational acquisitions and operational excellence. Over the last 50+ years, Frontenac has built a leading franchise working with over 275 owners of mid-sized businesses as they address complex transition issues of liquidity, management enhancement, and growth planning. For more information, please visit frontenac.com.