Star Leasing Company, a provider of trailer leasing and maintenance services and a portfolio company of I Squared Capital, announced it has signed an agreement to combine with Commercial Trailer Leasing (CTL), a full-service trailer lessor with a fleet size of over 19,000 assets serving both national and regional account customers throughout the United States. In conjunction with Star Leasing’s recent combination with North East Trailer Services (NETS), a trailer lessor with a fleet of over 10,000 trailers, the combined company will be one of the largest trailer lessors in the United States. The combined fleet size will be approximately 55,000 trailers by year-end with branches in the Northeast, Midwest, Southeastern, and Western regions of the U.S. The combined companies provide a full-suite of services including rentals, maintenance, trailer sales and integrated leasing to its customers, predominantly under long-term contracts.
“Through organic growth and tuck-in acquisitions Star Leasing has more than tripled in size with over $200 million of EBITDA. This is an important milestone in our plan to build the leading North American trailer lessor and leverages I Squared’s expertise in platform building,” said Gautam Bhandari, Chief Investment Officer and Managing Partner at I Squared Capital. “The combined business will be one of the largest service providers in North America, with a leading suite of customers, a sizable fleet, and a diversified footprint across the region.”
With a commitment to delivering exceptional customer service and a modern fleet of trailers, Star, CTL and NETS have been long trusted partners to businesses across diversified industries. The combination of the people, assets, and customers from Star, CTL and NETS aligns strategies to expand its presence in key markets across the country. By combining the strengths and resources of all three organizations, the business will aim to deliver enhanced trailer leasing options, exceptional value, and strong customer satisfaction.
“We are thrilled to welcome CTL and NETS to the Star Leasing family,” said Steve Jackson, CEO of Star Leasing. “These acquisitions mark a significant milestone in our growth journey and will enhance our ability to deliver best-in-class trailer leasing services to our combined customer base.”
“We are excited to partner with Star, NETS and I Squared Capital in this new chapter,” said David Eisen, CEO of CTL. “Our shared focus on providing the best, most tailored services to our customers will advance our go-forward strategy and help us to deliver enhanced and expanded trailer leasing solutions. We look forward to continuing to execute on our national account-focused business model, growing the nationwide refrigerated segment and remaining a significant shareholder in the combined business.”
“This acquisition is a big win for all the stakeholders involved, including our customers, vendors, and employees,” said Duff Sorensen, Founder and President of NETS. “The combination will allow our customers and employees to benefit from a larger trailer leasing platform with greater resources to support growth.”
The combined company will be led by Steve Jackson, David Eisen and Gregg Gottsegen as Managing Partners. The board of directors will include representatives from Star Leasing, CTL, NETS and I Squared Capital to execute on the combined business plan.
Gibson, Dunn & Crutcher LLP served as legal advisor to I Squared Capital and Star Leasing for both transactions, Perella Weinberg Partners served as financial advisor to I Squared Capital and Star Leasing for the CTL transaction. Evercore served as financial advisor and Scudder Law Firm served as legal advisor to CTL. Frohman and Associates, LLC served as legal advisor to NETS.