Helping US-based Global Critical Logistics expand international footprint

Shoosmiths’ longstanding client, Global Critical Logistics (GCL), an LA headquartered logistics business backed by New York private equity house ATL Partners, was looking to acquire UK headquartered Classic Automotive Relocation Services (CARS).

The strategic deal would expand their specialist services and international presence by pushing them further into Europe, the USA, and Asia. 

The target’s structure was unusual as it did not comprise one corporate group, so the transaction had to involve the acquisition of companies in the UK, the UAE, and the USA with support also being required in respect of subsidiaries in the Netherlands and Japan.

Shoosmiths led the deal and worked seamlessly with its World Service Group (WSG) colleagues at Van Doorne (the Netherlands), Atsumi & Sakai (Japan), Afridi & Angell (UAE), as well as working with client-instructed US firm, Blank Rome, to advise on aspects in every jurisdiction.

The logistics market is a growing, and complex market. As such, there was no one company operating as the global market leader. There is a huge demand for logistics companies to be able to transport a variety of high value goods, including vehicles, cross-border. This demand prompted GCL to acquire CARS. 
Due to the nature of the target’s corporate structure, the client was forced to conduct three separate transactions to acquire CARS. By collaborating creatively with other WSG firms, Shoosmiths avoided the client having to draw up three separate sets of deal terms. 

Instead Shoosmiths worked with the client to create common heads of terms and then prepared sale and purchase agreement and due diligence questionnaire templates, which were then adapted by our WSG colleagues and Blank Rome to ensure consistency. This meant that while there would be three separate albeit interconnected transactions, the approach and terms would be broadly common, giving the client deal certainty and making negotiations more straightforward. Shoosmiths acted as project manager across the jurisdictions ensuring conformity and commonality throughout. 

The result was the successful completion of a complex transaction, CARS’ extensive coverage of the European, US, and Middle Eastern markets solidifies GCL’s position as a global specialist freight forwarder for high-end and high-value vehicles, and compliments GCL’s existing brand Cosdel International Transportation. The combination of both brands’ expertise and global coverage creates a new global leader serving a complex and demanding market. 

Alastair Peet, partner at Shoosmiths said:

“We are very pleased to have advised GCL on their acquisition of CARS, helping them to become a serious global market leader in this space. This deal highlights the power of our international relationships, and the importance of us being a member of the World Services Group. Working alongside Afridi & Angell, Van Doorne, and Atsumi and Sakai was a privilege, and collaborating with them made the delivery of this deal seamless.”