Worldwide Express and GlobalTranz announce merger
You can read this article in 3 minutes
Worldwide Express, LLC and GlobalTranz Enterprises, LLC, two well-known non-asset providers of technology-driven third-party logistics solutions, have announced that the companies will merge thanks to a consortium led by CVC Capital Partners as well as GlobalTranz’s current lead investors, Providence Equity Partners and PSG.
In a statement, both companies revealed that Current Worldwide Express lead investor Ridgemont Equity Partners, along with both Worldwide Express and GlobalTranz management, will also retain a significant stake in the combined entity.
Tom Madine, CEO of Worldwide Express, will lead the combined company as CEO and Bob Farrell, CEO of GlobalTranz, will serve as a member of the board of directors. The transaction is expected to close during the third quarter of this year.
Both parties say the combined company will be able to offer market-leading offerings in parcel, less-than-truckload (LTL), full truckload (FTL) and managed transportation delivered through proprietary technology.
The plan, according to the statement, is to continue to go to market both directly and indirectly (via franchisees and independent freight agents) and to serve a customer landscape that spans from small and medium-sized businesses (SMBs) to larger enterprises. It is also said that the combined company will have “unique data assets” and “business intelligence capabilities” to provide its customers with visibility and analytics to deliver competitive advantage.
Tom Madine, who will lead the combined company, has expressed excitement at the possibilities the merger will bring:
“I am excited to combine Worldwide Express and GlobalTranz. 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. The opportunities for our employees, franchisees and independent agents are now greatly expanded. I tremendously appreciate the strong partnership we have had with Ridgemont and am excited to work with CVC and Providence as we continue to build Worldwide Express into a much larger business.”
Cameron Breitner, Managing Partner at CVC, also described the merger as an “exciting combination”:
“The combination of Worldwide Express and GlobalTranz brings together two companies that have distinguished themselves with innovative logistics solutions and technology. 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, and we expect to leverage our relationships and resources to help management continue to grow the business.”
GlobalTranz CEO Bob Farrell has also spoken similarly about the announcement:
“The combination of GlobalTranz with Worldwide Express is an exciting next step in the evolution of our company. 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. This transaction will provide new and exciting opportunities for the team at GlobalTranz.”
Photo credit: GlobalTranz