Private equity firm acquires packaging provider Coregistics in e-commerce bet

The Chicago private equity firm Red Arts Capital is making more waves in the logistics sector, announcing Thursday that it had acquired the contract packaging services provider Coregistics.

Terms of the deal were not disclosed.

Acworth, Georgia-based Coregistics offers supply chain solutions including package and process design, materials sourcing and procurement, contract packaging, and distribution. Its third party logistics (3PL) services include warehousing, fulfillment, e-commerce, and direct-to-DC to direct-to-retail, direct-to-consumer, parcel, freight management, and last parcel sectors. The company operates out of a footprint of nearly three million square feet across its 17 locations, serving customers primarily in the consumer packaged goods (CPG), food & beverage, and service parts industries.

Red Arts Capital says the deal comes on the heels of its most recent deal, the 2021 sale of the less than truckload (LTL) transportation companies Midwest Motor Express Inc. and Midnite Express Inc. (MME) for $150 million to truckload carrier Knight-Swift Transportation Holdings Inc. The firm has also made previous investments in Sunset Pacific Transportation and Radius Logistics. 

According to Red Arts Co-Founder and Managing Partner Chad Strader, Coregistics is well-positioned to provide 3PL services to the U.S. market as the continued growth of e-commerce is on track to positively impact packaging services demand.