Grand Rapids-based investment firm Auxo Investment Partners has sold Andrie Inc., a Muskegon-based marine transport company it has owned for more than five years. 

Williamsville, N.Y.-based Rand Logistics Inc., a private equity-backed provider of bulk freight shipping in the Great Lakes, acquired Andrie from Auxo Investment Partners, which bought the company in early 2019. 

Auxo Investment Partners was not specifically planning to sell Andrie, founder and Managing Partner Jeff Helminski said in an interview with Crain’s Grand Rapids Business. 

The two investment firms have known each other since the early days when Auxo first acquired Andrie and “have had a series of ongoing conversations” in the years after the deal, Helminski said. 

Keep up with all things West Michigan business. Sign up for our free newsletters today.

“We always thought they could be a potential interesting partner or owner of this business one day,” he said. “Recently, they had expressed a level of interest in seeing if there might be a transaction possible, and it very quickly came together and sort of made a match between our needs, their needs, the needs of the leadership team at Andrie. It was really the outcome of a series of conversations over a long period of time that then accelerated very quickly in recent months.” 

Terms of the deal, which closed July 24, were undisclosed. 

CEO Sven Christensen and the existing management team will continue to operate Andrie in Muskegon under the present brand as a Rand Logistics business. 

“We’re proud of the legacy we’ve built over the last 36 years as one of the premier providers of bulk cargo transportation on the Great Lakes and see incredible growth opportunities for our business as part of the Rand platform,” Christensen said in a statement. “The Rand team shares our focus on safety and customer service, and we look forward to joining forces … to both efficiently and safely deliver for our customers.” 

Andrie transports products that include liquid asphalt, cement, refined oil, and calcium chloride throughout the Great Lakes. The company vessels operate in all five Great Lakes and the Illinois River. 

Auxo Investments Partners previously sold and exited an investment in M/G Transport Services to Maritime Partners, both based in Louisiana. 

The Andrie sale was like the M/G Transport Services deal in that an opportunity arose to exit an investment and sell to a buyer that could grow the business, Helminski said. 

“We and the team at Andrie had really maximized the current operations of the business, and as you looked forward and thought about future growth opportunities, in both cases there were potential new owners that were better positioned to leverage the capabilities of the companies for future growth than either of them could do on their own.” 

At Andrie, “the professional growth opportunity for them, the ability to grow the business as part of the broader Rand platform was simply greater than they would ever be able to achieve as a standalone business,” Helminski said. 

“This is a terrific outcome for all parties. Rand gets a great business with an outstanding management team. Andrie’s management team gets an excellent new owner who can offer expanded professional growth opportunities — an important consideration for us. And we deliver a strong return for our investors,” he added. 

Minneapolis, Minn.-based Northborne Partners LLC served as financial adviser to Andrie, which was represented by Grand Rapids-based law firm Miller, Johnson, Snell & Cummiskey PLC. BDO USA LLP also advised Andrie. 

Rand Logistics operates as a portfolio company of New York-based Duration Capital Partners, a new private equity firm focused on North American transportation infrastructure. 

The company operates a fleet of 21 vessels that transport dry commodities such as iron ore, aggregates, grain, metallurgical coal, and salt. The addition of Andrie expands Rand’s operations to include the bulk transport of dry and liquid commercial products for clients in the Great Lakes. 

“As we continue to thoughtfully grow our platform and service offerings, we are pleased to partner with an industry leader in Andrie that brings together complementary cultures and capabilities, while expanding our presence in the Great Lakes region,” Rand Logistics CEO David Foster, CEO said in a statement. “Andrie’s exceptional reputation with customers, dedication to employee safety and client service, and experienced management team makes them an ideal partner for Rand, and we look forward to working closely with Sven and the entire Andrie team to achieve greater success together.” 

More from Crain’s Grand Rapids Business:

Cannabis exec plans dispensary at former Grand Rapids credit union branch

SpartanNash wants to capture more consumer dollars as grocery spending plateaus

Judge denies bank’s request for receiver over Grand Rapids Sligh redevelopment properties