The summer has brought heat to mergers and acquisitions in the logistics sector, led by private equity firm The Jordan Co. moving aggressively to gather several firms under its umbrella.
Jordan, or TJC, is a middle-market private equity firm that has raised more than $8 billion since 2002 to invest in the consumer, energy, health care, industrial, and transportation and logistics sectors.
According to its website, TJC acquires small and regional firms in long-term partnerships with their management and works to build the companies “into large, integrated enterprises through a combination of internal growth and strategic acquisitions.”
Phoenix-based freight broker GlobalTranz Enterprises reported June 5 that it would be acquired by TJC from its investors, which include $54 billion-asset Providence Equity Partners. The price was $400 million according to news reports.
GlobalTranz ranks No. 10 on the Transport Topics list of top freight brokerage firms with $151 million in net revenue. (GlobalTranz itself has been an aggressive acquirer, buying five firms in the 12 months ending in January.)
“GlobalTranz is a very strong fit with our existing portfolio companies, and we expect to leverage our experience in the logistics space to help management continue to grow the business,” TJC senior partner Brian Higgins said in a press release.
Along with GlobalTranz, TJC’s portfolio includes AFF Global Logistics, Capstone Logistics, Odyssey Logistics & Technology and Quick International Courier.
GlobalTranz dispatchers in Chicago. (GlobalTranz Enterprises)
Capstone, which provides supply chain services to distribution centers in grocery, food service and retail markets, in June purchased LoadDelivered Logistics, a 3PL specializing in the food and beverages sector. LoadDelivered will retain its brand and independence, the firms announced.
Chicago-based LoadDelivered ranks No. 45 on the TT list of top freight brokerage firms with $20 million in net revenue.
Capstone also bought Logistical Labs, the maker of LoadDex, a Software-as-a-Service platform that collects and analyzes supply chain data.
“We’re a technology company rooted in the transportation business. They are a top-rated broker in warehouse,” Logistical Labs Chief Operating Officer Chris Ricciardi said. “This will open new doors for us and vice versa.”
Terms weren’t released for either Capstone purchase.
The uptick in acquisitions is occurring as 3PL firms feel the need to be providers of multiple services across all regions, said Mark Saraiva, head of Transportation Investment Banking with Cowen.
“This is a trend where logistics firms know their customers don’t want to deal with a million providers. And the more geography you can cover the better,” Saraiva said.