Fenway partners sells its share of Greatwide Logistics Services to Investcorp and Hicks Holdings

Jeff Berman, Senior Editor -- Logistics Management, 12/8/2006

DALLAS—Fenway Partners, a New York-based private equity firm, said earlier this week it has entered into an agreement to sell a large portion of its holding in non asset-based third-party logistics (3PL) services provider Greatwide Logistics Services to Investcorp and Hicks Holdings LLC for $730 million.

The transaction is expected to be completed by the end of this year. Greatwide’s core focus areas are dedicated transport, truckload management, truckload brokerage and distribution logistics. Wal-Mart, Target, IBM, Sysco, UPS, Dow, Ford Motor, and GM are among the company’s customers.

Fenway has been very active in the transportation and logistics sectors, having made 14 acquisitions since 2000. Marc Kramer, Fenway managing partner, told Logistics Management, that Fenway had owned its portion of Greatwide for the last six years. And he said “it seemed to be an appropriate time to demonstrate a return to [its] investors.”

Fenway will retain a minority interest in Greatwide, added Kramer, and he also said the firm is enthusiastic about Greatwide’s future prospects.

Once the transaction is completed, Greatwide’s customers, owner-operators, agents and employees will not see any significant change right away, said Ray Greer, Greatwide president and CEO. “

“We believe this marks the beginning of the next level of Greatwide’s growth that Fenway started in 2000,” said Greer. “While the transaction has not yet closed, we already are beginning to plan additional investments and new products that will provide our customers with new logistics benefits.”

Greer added that this transaction will provide Greatwide with additional ways to leverage its four core business areas in unique ways that will provide its customers with more innovative supply chain services.

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