GlobalTranz Enterprises said it has agreed to acquire Chicago-based freight brokerage firm AFN, a move designed to boost the company’s share of the market for third-party logistics services.
Terms of the deal, which was announced Sept. 13 and is expected to be completed within 45 days, were not disclosed.
AFN ranks No. 34 on Transport Topics’ list of top freight brokerage firms with net revenue of $33 million and gross revenue of $209 million in 2017.
“AFN Logistics is one of the fastest growing and most exciting companies in the 3PL space,” said Bob Farrell, chairman and CEO of Phoenix-based GlobalTranz. “Combining GlobalTranz’s and AFN’s network and technology along with the best talent in the industry creates a company that will exceed $1.5 billion in [gross] revenue and will further accelerate our growth and market leadership.”
GlobalTranz ranks No. 10 on TT’s list of top freight brokerage firms with net revenue of $151 million and gross revenue of $854 million in 2017.
If completed, the purchase of AFN will be GlobalTranz’ seventh acquisition since January 2017 and the second since GlobalTranz itself was acquired in June by The Jordan Co., a private equity firm with offices in New York and Chicago, for a reported $400 million.
Brian Higgins, senior partner at The Jordan Co., said in a statement he was pleased to support the acquisition of AFN by GlobalTranz.
“GlobalTranz is executing on its strategy to drive market leadership by strong organic and acquired growth,” he said. “AFN is a strong fit with this strategy.”
Founded in 2003 by Ryan Daube, AFN recently moved its corporate offices from Niles, Ill., to an area in downtown Chicago that has become a hub for transportation and technology firms.
Owen Schnaper, CEO of AFN, commented on the company’s future with GlobalTranz.
“Since Ryan Daube founded the business 15 years ago, AFN has focused on driving high value for its customers through unparalleled service with trusted freight carriers providing high-quality, consistent capacity,” Schnaper stated. “By combining with GlobalTranz, AFN can continue this history on a bigger platform with differentiated technology.”
Schnaper joined AFN early in the company’s history as a carrier sales representative. He left to pursue a career in finance with positions at the American Enterprise Institute and Robert W. Baird and co-founded an apparel brand called Salmon Cove before rejoining AFN in 2015.
AFN’s services include truckload and less-than-truckload freight brokerage, transportation management and supply chain consulting, plus risk management, carrier compliance and cargo security services.
With its purchase of GlobalTranz, The Jordan Co. now has one of the largest and most diverse portfolios of transportation and logistics companies of any investment firm. The company’s holdings include:
- AFF Global Logistics, based in Fife, Wash., an international freight forwarder and trucking and warehousing firm, acquired in December 2012.
- Capstone Logistics, based in Norcross, Ga., a provider of outsourced labor for warehouses and distribution centers, acquired in August 2014.
- Odyssey Logistics & Technology Corp., based in Danbury, Conn., a multi-modal transportation management firm with operations in North America, Europe and Asia, acquired in October 2017.
- Quick International Courier, based in New York City, a firm that provides expedited shipping of blood, tissue and organs, clinical trial samples, investigational drugs and vaccines and other goods that require extra security and specialized handling, acquired in March 2017.