Phoenix-based GlobalTranz, a full-service 3PL focused on freight brokerage and technology, and Dallas-based Worldwide Express, a full-service non-asset-based 3PL focused on small package, truckload and less-than-truckload services (LTL), said late last week they will join forces to become a merged entity.
The companies said that this initiative, which is expected to be made official during the third quarter of this year, was sponsored by a consortium under the leadership of CVC Capital Partners and leaf GlobalTranz investors Providence Equity Partners and PSG, with current Worldwide Express lead investor Ridgemont Equity Partners, as well as Worldwide Express and GlobalTranz management also retaining major stakes in the combined company. The merged company will be led by Worldwide Express CEO Tom Madine, and GlobalTranz CEO Bob Farrell will be a member of the board of directors.
And, from a service perspective, the companies highlighted their various complementary strengths, including parcel, LTL, full truckload, and managed transportation through proprietary technology, and have a market-facing approach, on a direct and indirect basis, through franchisees and independent freight agents. They also noted they will collectively serve a customer base ranging from small- and medium-sized businesses (SMB) to larger enterprises, coupled with the combined company being comprised of unique data assets and business intelligence capabilities providing shippers with visibility and analytics focused on providing a competitive edge.
“I am excited to combine Worldwide Express and GlobalTranz,” said Madine 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. 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.”
GlobalTranz’ Farrell added that the combination of GlobalTranz with Worldwide Express is an exciting next step in the evolution of the 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,” he said. “This transaction will provide new and exciting opportunities for the team at GlobalTranz.”
Analyst takes: Ben Gordon, Managing Partner of Cambridge Capital, an investor in niche supply chain leaders and also Managing Partner of BGSA Holdings, a leading mergers and acquisitions advisory firm focused on the transportation, logistics, and supply chain technology sector, told LM that the merger of GlobalTranz and Worldwide Express produces a $4 billion powerhouse in truck brokerage, freight management, and logistics.
“The resulting business will be a market leader in truckload, LTL, and parcel management,” said Gordon. “This deal showcases the convergence of adjacent supply chain services. GlobalTranz and Worldwide Express will operate under separate brands owned by CVC. This structure is reminiscent of how Gryphon bought Transportation Insight and Nolan Transportation but kept them separate initially. This deal could also be a prelude to another public offering in logistics.”
Evan Armstrong, president of Milwaukee-based supply chain consultancy Armstrong & Associates, said that this merger would make Worldwide Express/GlobalTranz Enterprises the 5th largest Domestic Transportation Management Freight Broker in the U.S. with combined 2020 gross revenue of $3.3 B and would make it the 29th largest global 3PL.
“It combines WWE’s small parcel network and SMB customer focus with GlobalTranz LTL, TL freight brokerage and managed transportation capabilities allowing for significant cross-selling opportunities,” he said. “WWE will also be able to benefit from GTZ’s proprietary technology platform which is above average among leading freight brokers.”