Subscribe to our free, weekly email newsletter!


Rotunda Capital Partners sells off Worldwide Express

By Jeff Berman, Group News Editor
August 12, 2013

Last week, Rotunda Capital Partners, a middle market private equity firm, announced it sold off global logistics services provider Worldwide Express to an investment group, which included a significant investment from Worldwide’s management team.

Worldwide Express is one of the largest authorized resellers of UPS services. Rotunda initially invested in the Dallas-based company in 2009, not long after its main shipping partner DHL ceased domestic operations in the U.S. at which point it developed a deeper relationship with UPS on the reselling side. Worldwide also rolled out freight shipping services in early 2009 that was part of a partnership with a 55-carrier network.

During the four year-period it has been involved with Worldwide Express, Rotunda said Worldwide has seen major gains in its margins and boosted annual sales from $192 million to more than $550 million.

John Fruehwirth, managing partner at Rotunda Capital Partners, explained to LM that there were a few different factors driving the decision for this sale.

“Worldwide Express had performed very well since we invested in 2009 and it was time to monetize our investment on behalf of our investors,” he said. “Along with management, we re-invested some of our proceeds and are pleased to be invested as the Company continues to grow its revenue and profitability.”

In terms of how Rotunda has positioned Worldwide for continued growth, Fruehwirth said that when it first made the investment in 2009, Worldwide was largely focused on providing overnight express/light package delivery for small and medium size businesses through its authorized reseller program with UPS.  Today, he said, Worldwide Express has expanded the product set to include light package, ground freight, a robust national LTL offering and it recently began providing full TL options for these same customers in addition to having some franchisees testing ocean freight options. 

“In addition, we improved and augmented the proprietary TMS technology we offer,” he added. “The updated Speedship and SpeedFreight programs allow our customer a choice of which shipping option best meets their needs (modality, speed and cost) from among 55 partner carriers. 

He also observed that Rotunda continued to invest in corporate training of the Franchisee’s employees to enhance their product knowledge and provide better service to their customers.

“We are pleased and proud of the growth our system has achieved over the term of Rotunda’s involvement and appreciate the strong and successful partnership that we have enjoyed with them,” said David Kiger, founder and chief executive officer at Worldwide Express, in a statement.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

In this webcast we'll explore how successful companies use strategies such as cross-client load consolidation, zone skipping, pooling, etc. to minimize freight cost. You’ll hear how transportation optimization is used to generate cost savings and where the ROI comes from.

Even with expected import cargo volume declines in the coming months, the Port Tracker report by the National Retail Federation (NRF) and maritime consultancy Hackett Associates expects volumes to be up for the first half of 2016.

USPS pointed to ongoing growth in its Shipping and Package Group, whose primary offerings are comprised of Priority Mail, Express Mail, Parcel Select and Parcel Return services, as the key driver for the quarterly revenue gains.

With a 2.3 cent decline to $2.008 per gallon, this week’s price stands as the lowest national average going back to the week of March 16, 2009, when it checked in at $2.017.

A recent Wall Street Journal report stated that third-party logistics and freight transportation services provider XPO Logistics shut down seven freight terminals that were part of the Con-way Inc. less-than-truckload (LTL) network, Con-way Freight. Con-way was acquired by XPO for $3 billion last year.

Article Topics

News · Truckload · UPS · LTL · Express · Parcel Shipping · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA