GlobalTranz, Worldwide Express Announce Merger
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GlobalTranz Enterprises and Worldwide Express are merging in a deal announced June 11, bringing together two non-asset-based providers of logistics services.
According to a news release, the combined company will have parcel, less-than-truckload, truckload and managed transportation offerings, all delivered through proprietary technology.
It will continue to go to market both directly and indirectly — via franchisees and independent freight agents — serving a customer base that includes small and medium-sized businesses as well as larger enterprises.
“The opportunities for growth by combining our resources will dramatically increase our ability to drive technology, further strengthen our carrier partnerships and allow us to provide a deeper offering to our customers,” Worldwide Express CEO Tom Madine said in a statement. Madine will retain the CEO post under the new company. “The opportunities for our employees, franchisees and independent agents are now greatly expanded,” he said.
GlobalTranz CEO Bob Farrell will become a member of the board of directors. He said the combined business will provide new and exciting opportunities for his team.
“The combination of GlobalTranz with Worldwide Express is an exciting next step in the evolution of our company,” Farrell said. “This merger allows GlobalTranz’s strong technology to be combined with expanded modal capabilities that both our direct resources and independent freight agents can leverage for accelerated growth through deeper, more strategic customer solutions.”
GlobalTranz ranks No. 27 and Worldwide Express ranks No. 28 on the Transport Topics Top 50 list of the largest logistics companies in North America.
The transaction is expected to close during the third quarter of this year.
“This merger would make Worldwide Express/GlobalTranz Enterprises the fifth-largest domestic transportation management/freight broker in the U.S. with combined 2020 gross revenue of $3.3 billion,” Evan Armstrong, president of the 3PL market research and consulting firm Armstrong & Associates, told Transport Topics. “It combines WWE’s small parcel network and SMB customer focus with GlobalTranz LTL, TL freight brokerage and managed transportation capabilities allowing for significant cross-selling opportunities.”
GlobalTranz acquired freight brokerage companies Global Freight Source and Worthington Logistics in 2017. Since that time, it has acquired several other businesses in the freight brokerage and transportation management spaces, including the technology-driven managed transportation provider Cerasis.
“These acquisitions have expanded its service capabilities, revenue, executive team and supply chain expertise,” Armstrong said. “The Cerasis acquisition also marked the launch of GlobalTranz’s Final Mile offering with a network that covers all 48 contiguous U.S. states serving both B2B and B2C shippers.”
GlobalTranz has had a few owners of its own over the last handful of years. Providence Strategic Growth (PSG) sold it to the private equity firm The Jordan Company in June 2018. PSG is the growth equity affiliate of Providence Equity Partners, which became GlobalTranz’s owner in April 2019.
“Together, GlobalTranz and Worldwide Express will offer a logistics platform poised for continued success with expanded scale, product offerings and sales channels,” David Phillips, senior managing director at Providence Equity Partners, said in a statement. “We are excited to continue our strong partnership with the GlobalTranz team and to be a part of the combined company’s next phase of growth.”
The transaction is sponsored by a consortium led by CVC Capital Partners as well as GlobalTranz’s current lead investors, Providence Equity Partners and PSG. Current Worldwide Express lead investor Ridgemont Equity Partners, along with both Worldwide Express and GlobalTranz management, will retain a significant stake in the combined entity.
“The combination of Worldwide Express and GlobalTranz brings together two companies that have distinguished themselves with innovative logistics solutions and technology,” Cameron Breitner, managing partner at CVC, said in a statement. “Both companies have developed leading positions across multiple sales channels, strong carrier partnerships and superior customer service. The CVC Funds’ investment will help underpin this exciting combination.”
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