NEWS

WEST PALM BEACH, Fla., May 20, 2025 /PRNewswire/ — Cambridge Capital (“Cambridge”), a leading investment firm focused on the applied supply chain, today announced the combination of existing portfolio company Everest Transportation Systems, a transportation brokerage focused on dry truckload and drayage moves, with Simple Logistics, a transportation brokerage specializing in service-sensitive refrigerated truckload freight. 

The combination will enable both companies to expand scale, capture significant operational efficiencies, and offer an enhanced suite of services, including cross-selling opportunities and a more robust carrier network, positioning the combined company for even greater growth in the years ahead. Customers and carriers will experience the enhanced financial strength of the combined platform with Cambridge’s backing.

This combination marks a strategic milestone for Everest Transportation Systems, which has been redefining operational efficiency through its tech-enabled platform and unique “owned and operated” offshore labor model. By integrating Simple Logistics’ specialized capabilities in refrigerated logistics, Everest will diversify its portfolio and continue to enhance capabilities for a broader client base.

In August 2021, Cambridge completed a majority investment in Everest, a founder-owned freight brokerage. Everest specializes in full truckload, drayage, intermodal, hazmat, expedited and volume partials, with a focus on stable, non-cyclical industries such as food and beverage. Everest has achieved great success today in part because of level of automation, but also due to its unique “owned and operated” offshore labor force to reinforce its North America operations.

In partnership with Everest’s management team, Cambridge has executed multiple value creation initiatives. Cambridge completely re-platformed Everest to leverage leading cloud-based software applications and tools in an integrated fashion, optimizing both internal workflows and customer experience. Additionally, Cambridge recruited a leading Independent Board Chairman, Chris Pickett, who built Coyote Logistics from inception until a $1.8 billion exit to UPS.

Simple Logistics is a well-established freight brokerage provider specializing in timely, efficient, complex, and service sensitive movement of refrigerated freight and dry van requirements for large customers. The Company is led by Steve Spoerl (CEO), who has decades of experience in truck leasing, food distribution, and supply chain, and Jim Caine (COO) and Jeff Paul (CFO), who will all be joining the Everest platform post-transaction.

“We are thrilled to welcome Simple Logistics to the Everest Transportation Systems family,” said Jake Elperin, Co-Founder and CEO of Everest Transportation Systems. “Steve and his team have built a strong reputation in the industry since 2012, and their expertise and network will be invaluable as we work together to serve a growing and diverse customer base,” said Phil Weber, Co-Founder and COO of Everest Transportation Systems.

May 20, 2025 Cambridge Capital Press release

From The Start

Going by Advantage Data’s records, CSWC has been a lender to Everest ever since Cambridge Capital first acquired the freight broker in 2021.

CSWC advanced $9.0mn in the form of a Term Loan maturing in 2026 and priced at SOFR + 800 basis points – on the high side by CSWC standards.

No equity was involved.

Deteriorating

Over the years, the loan appears to have amortized down to a par balance of $6.159mn at the end of the IQ 2025.

However, the company appears not to have been performing to expectations as CSWC has been gradually increasing its fair market value discount since 2023, peaking at (30%) as of March 31, 2025.

CSWC has not discussed the company on its conference calls so we have no word on why the investment is being written down.

The company is also financed by asset-based lender Wintrust Financial Corporation, which is providing “growth capital financing of the combined platform”, according to Cambridge Capital.

Merger Impact

Unclear at this point is whether CSWC participated in the financing of the acquisition or is being refinanced at this point, a little over a year away from the maturity of its Term Loan.

If the latter – and assuming a payoff at par – the BDC will be able to book an unrealized appreciation of $1.8mn.

If the former, the size and the terms of CSWC’s exposure is likely to change and it’s likely that there may be a write-up of the loan as well.

VIEWS

Thumbs Up

From the limited information available, the merger of Everest and Simple Logistics seems to be beneficial to the companies involved and to CSWC.

The transaction is likely to benefit the BDC, whether remaining as a lender or not.

The only downside may be that CSWC may lose a profitable Term Loan but will also improve portfolio credit quality if the investment is upgraded or repaid.