GlobalTranz Enterprises has struck a deal with Providence Equity Partners to acquire the business from The Jordan Co. in a move designed to provide additional financial support for the company’s aggressive growth strategy.
GlobalTranz, a Scottsdale, Ariz.-based logistics firm, announced the changes April 3, a day after making its latest acquisition of Chicago-based Circle 8 Logistics.
Terms were not disclosed for either deal.
The transaction with Providence is expected to close within 60 days, the company said.
“GlobalTranz is a very strong fit with our model,” said David Phillips, managing director of Providence, in a prepared statement, adding that he expects “to leverage our relationships and resources to help management continue to grow the business.”
Private equity funds affiliated with Providence have invested in 180 companies since 1989 and have more than $40 billion in aggregate capital committed. The focus of the firm’s investments are the media, communications, education and information industries, according to its website. The company has offices in Providence, R.I., New York, Boston and London.
The Providence Strategic Growth fund was part of an ownership group that sold GlobalTranz to The Jordan Co. in July 2018.
Renee Krug, CEO of GlobalTranz, said she is excited to have Providence as the company’s new owner because of its track record of helping expand business-to-business, technology-enabled services businesses.
“TJC’s sector experience facilitated accelerated growth both organically and via acquisitions,” Krug said in a news release. “We are pleased to provide a successful exit for TJC while concurrently positioning the company well for the next steps in its journey.”
Other transportation and logistics companies that are part of The Jordan Co.’s current investment portfolio include Odyssey Logistics & Technology Corp., Capstone Logistics and Unitrans International Corp.
Bob Farrell, executive chairman of GlobalTranz, said the company’s new partnership with Providence will allow the company to continue “our pattern of strong growth.”
“With Providence’s support, we expect to build upon our unique success through ongoing technology innovation and the deployment of logistics solutions that address ever-increasing shipper sophistication,” he said.
With its acquisition of AFN Logistics in October, GlobalTranz said its business generated gross revenue of $1.38 billion in 2018. The company ranks No. 10 on the 2018 Transport Topics list of top freight brokerage firms and is expected to move higher on the 2019 list, which will be published April 8.
On April 2, GlobalTranz announced the acquisition of Circle 8 Logistics, a Chicago-based provider of multimodal transportation and freight brokerage services.
The deal, which represents the ninth acquisition since January 2017 for GlobalTranz, will boost the company’s presence in an area that has a large pool of logistics and technology talent, according to GlobalTranz officials.
Founded in 2001 by Mike Lewis and Ryan Phillips, Circle 8 operates from facilities in Niles and Lombard, Ill., plus an office in downtown Chicago.
“Combining with GlobalTranz allows us to provide customers with increased service offerings, access to capacity and advanced technology,” Lewis said.