The ultimate road warrior has been born. Dallas-based Worldwide Express—a global logistics provider that’s the largest authorized UPS non-retail reseller in the U.S.—has merged with GlobalTranz, a full-service third-party logistics provider based in Phoenix. The two companies have a combined revenue of nearly $4 billion.
The deal was sponsored by a consortium headed by CVC Capital Partners and GlobalTranz’s lead investors, Providence Equity Partners and PSG. Worldwide Express’s current lead investor, Ridgemont Equity Partners, will also retain a “significant stake” in the combined entity, along with management of both companies, according to a statement.
Tom Madine, CEO of Worldwide Express, will lead the combined company as CEO. GlobalTranz’s CEO Bob Farrell will serve as a member of the board. The new company will be headquartered in Dallas, FreightWaves reports. The transaction is slated to close in Q3 of this year.
Merging complementary strengths
Separately, the two companies were already powerful logistics providers. Now they’ll combine their differing strengths and focuses into a global logistics behemoth.
Worldwide is focused on small package, truckload, and less-than-truckload (LTL) services, with its expansive UPS services a key part of its business. It serves more than 92,000 customers, including a portfolio of more than 65 LTL and tens of thousands of truckload carriers.
GlobalTranz specializes in freight brokerage and technology, with a goal of accelerating the supply chain success of its customers. It has a customer base of 25,000 shippers.over one million product users.
The new company will offer all the above with managed transportation delivered via proprietary technology. It will continue to ship via both franchisees and independent freight agents, serving customers from small- to medium-sized businesses to larger enterprises.
“I’m excited to combine Worldwide Express and GlobalTranz,” Madine said in a statement. “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.”
Madine says the opportunities for Worldwide Express’s employees, franchisees, and independent agents are now greatly expanded with a goal of continuing to build Worldwide into a much larger business.
Innovation is a key offering
CVC managing partner Cameron Breitner points to innovation as a key strength the two companies share.
“The combination of Worldwide Express and GlobalTranz brings together two companies that have distinguished themselves with innovative logistics solutions and technology,” Breitner said in the statement. “Both companies have developed leading positions across multiple sales channels, strong carrier partnerships, and superior customer service.”
Technology plus modal capabilities
GlobalTranz CEO Bob Farrell believes the merger will help his company evolve to the next level.
“This merger allows GlobalTranz’s strong technology to be combined with expanded modal capabilities,” he said, which “both our direct resources and independent freight agents can leverage for accelerated growth through deeper, more strategic customer solutions.”
According to FreightWaves, the companies will operate independently in the short term. Leveraging expanded IT capabilities across the new company will be the most immediate payoff of the merger.
Fidus Partners, William Blair, and Jefferies LLC advised the consortium on the deal. Dechert LLP, Weil, Gotshal & Manges LLP, and Kirkland & Ellis LLP served as counsel for CVC, Providence, and Ridgemont respectively. Harris Williams and J.P. Morgan advised Worldwide Express.
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