8T8 Partners

ACQUISITION OF "ROBIN LOGISTICS"

Published on Apr 8

DEAL OVERVIEW

Total Capital Requirement: $3.16M

Our logistics holding company acquires high-growth, high-margin trucking businesses overlooked by financial and strategic buyers. Led by executives with 300+ years of combined experience in the industry, we leverage our expertise to accelerate growth and profitability of acquired firms.

TRANSACTION DETAILS

  • Acquisition Price: $3M (cash- and debt-free)
  • Additional Working/Growth Capital: $910K
  • Deal Structure:
  • $2.25M Cash at closing
  • $750K Promissory note (3 years @ 5% interest)
  • Capital Sought:
  • $500K Preferred equity
  • $2.66M Senior debt (up to 72 months)

COMPANY PROFILE

"Robin Logistics" (established 1985) operates in the Phoenix metropolitan area with a fleet of eight specialized dump trucks exclusively serving "Client A" (NYSE-listed materials supplier to commercial construction). The business generates stable, predictable cash flow from this long-term relationship.

Financial Highlights:

  • 2024 Revenue: $2.1M
  • 2024 FCF: $788K
  • FCF Margin: 37.5%
  • Asset Value: $1.7M (equipment) 

COMPETITIVE ADVANTAGES

  • Operationally Integrated: Deep relationship with blue-chip client
  • Specialized Equipment: Hard-to-source vehicles create barrier to entry
  • Stable Operations: 7 experienced drivers (4 W-2, 3 1099)
  • Management Continuity: Key personnel with 20+ years experience ready to assume leadership
  • Geographic Focus: Phoenix market avoids construction seasonality issues


GROWTH OPPORTUNITY

The greater Phoenix area is experiencing robust commercial construction growth:

  • Population growth projected at 1.6% (2025) and 1.5% (2026)
  • $7B development project announced in 2024
  • Potential for 70,000 new jobs from development projects
  • Ongoing infrastructure development: light rail extension, industrial facilities, data centers
  • Federal funding from Infrastructure and Jobs Act and CHIPS Act driving demand

EXPANSION STRATEGY

  • Fleet Growth: Add one truck per year with similar economics
  • Operational Improvements:
  • Modernized operations
  • Multi-shift potential for asset utilization
  • Technology implementation for route optimization
  • Enhanced fuel efficiency measures
  • Service Expansion: Addition of brokerage services (untapped in this segment)

PROJECTED RESULTS

  • 50% organic EBITDA growth over five years
  • New vehicle payback period under three years at current margins
  • "Evergreen" contract already secured with primary client

Target Closing Date: April 30, 2025