On May 12, 2020, Hilco Global announced that it had formed a new joint venture company with Colbeck Capital Management and would be acquiring the assets of 19th Capital, a leading asset financing and fleet management company in Indianapolis. The multi-million dollar transaction was completed in early May.
Prior to the acquisition, 19th Capital provided trucking solutions for the North American transportation industry. The new LLC, dubbed H19 Capital, will take over 19th Capital operations and begin a restructuring period. The primary goal is to adapt its services to a post-pandemic world and continue to build the partnership between Colbeck and Hilco. The team is also prioritizing relationships, both with the former employees and customers of 19th Capital.
Included in the purchase were thousands of semi-trucks and trailers, trucking machinery and equipment, and all intellectual property. This will give H19 Capital the ability to organize and maintain its substantial fleet. H19 also acquired the company’s existing portfolio, which included more than 600 existing truck leases. Finally, H19 will also take over the lease of two truck yards in Indiana that can store more than 1,700 trucks at one time. A 136,000 square foot facility will be available to service, detail, or paint the fleet vehicles.
In meetings held in Indiana in early May, Hilco Global executives made it clear that they would continue to sell and service trucks while managing the lease portfolio. As they reorganize and transition the company, they want to streamline operations and improve efficiency on every level. The company is also putting a heavy emphasis on job retention, saving at least 55 positions that would have otherwise been made redundant before the end of 2020.
The President of Hilco Performance Solutions, Steve Tanzi, was excited about the purchase and what it means for the future of Hilco and Colbeck. He was impressed by his team’s ability to appropriately value the business, negotiate the terms, and arrange the acquisition. Any underperforming assets will be monetized during the restructuring process, with a focus on how to best maximize the profits of every lease and vehicle without compromising the quality.
Colbeck, a firm that specializes in companies undergoing transition, is also pleased to be a part of this partnership. Managing Partner Jason Colodne has commented that Hilco Global has proven their ability to value and monetize a wide variety of assets. Colbeck has had a long-standing relationship with Hilco, one built on mutual respect and trust.
The restructuring team will be led by Tanzi who will serve as CEO of the project, supported by Bryan Courcier, the Sr. VP of Hilco Valuation Services, and Buddy Beaman, the Executive VP at Hilco Receivables. Courcier, who will serve as the CCO, believes that Hilco has a unique opportunity here, given the company’s abundant experience in the transportation sector. The direct involvement in the industry in addition to their expertise in monetizing assets puts them in a prime position to successfully restructure the company.
Hilco Global
Hilco Global is a private financial services company specializing in asset valuation for companies. The team works with a variety of clients, whether those clients are in the red or black. There are more than 20 specialized business units at Hilco, making for a diverse team that can show companies the value of their assets and tells its executives how to best monetize each one to their advantage. Based in Illinois with employees operating on five continents, Hilco has more than 30 years of experience providing advice, insight, and capital to industries all over the world.
Colbeck Capital Management Colbeck was founded by Jason Colodne and Jason Beckman in 2009. The team focuses on devising creative solutions when traditional sources of capital are not available. Specializing in transfers and transitions, its principal players have underwritten a combined total of more than $22 billion in loan volume.
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