Norwest Equity Partners Leads Investment in Jacobson Companies

April 08, 2004

Minneapolis, Minnesota – Norwest Equity Partners (NEP) announced today its investment in Jacobson Companies, a leading third party logistics provider. The investment closed April 7, 2004.

As a national third party logistics and warehousing company, Jacobson is dedicated to helping customers manage their supply chain management activities. The company is comprised of six integrated operating companies: Jacobson Warehouse Company, Jacobson Transportation Company, Jacobson Logistics Company, Jacobson Packaging Company, Jacobson Staffing Company and Jacobson Investment Company. Working together, the operating companies serve the needs of leading manufacturing companies, providing full-service, seamless solutions to the complexities of supply chain management and helping clients achieve a greater return on assets. The company’s integrated trucking company, warehousing service and contract packaging are designed to help customers reduce supply chain costs.

Headquartered in Des Moines, Iowa, Jacobson operates locations in the following states: Arizona, Arkansas, California, Delaware, Georgia, Illinois, Indiana, Iowa, Michigan, Missouri, New Jersey, Pennsylvania, South Carolina, Tennessee and Texas.

Concurrent with NEP’s investment in Jacobson, Norwest Mezzanine Partners (NMP) made a subordinated debt investment in the company. The proceeds from the investments by NEP and NMP, along with a new senior debt financing, will be utilized to purchase stock of the company and fund future growth and acquisition opportunities.

Jacobson Companies was founded by Richard O. Jacobson in 1968. Mr. Jacobson’s first property was a 96,000 square foot warehouse in downtown Des Moines. Since that time he has overseen the company’s growth across all of its business lines. “Jacobson currently manages over nine million square feet, has a delivery fleet of over 400 tractors, and has rapidly growing enterprises in packaging, industrial staffing and freight management,” states Mr. Jacobson. “The evolution of Jacobson Companies has been truly amazing and I believe its future is very bright.”

“We believe Jacobson will continue its strong performance,” states NEP Partner Erik Torgerson. “The management team has consistently built profitable long-term customer relationships.” Torgerson also points to the company’s innovative, customer-focused operations as one of its key competitive advantages. “Customers rely on Jacobson and the company consistently delivers high quality services.”

NEP Managing General Partner John Lindahl adds, “Jacobson demonstrates NEP’s track record of investing in top tier management teams with strong business models. We are very excited to add Jacobson to the NEP portfolio.”

Jacobson CEO Craig Petermeier adds, “We eagerly anticipate our partnership with NEP. NEP’s investment expertise and proven history of success will enable us to continue to grow our business internally as well as through strategic acquisitions.”

Cybus Capital Markets, LLC and McGarvey & Affiliates, Inc. initiated the transaction on behalf of NEP. Both Cybus and McGarvey & Affiliates are based in Des Moines, Iowa.