BDP looks to raise additional capital

   BDP International, a large Philadelphia-based logistics services company, is seeking additional funds for expansion, but said it is not looking to sell itself as one source quoted in a Reuters report alleged last week.
   “Let me state formally that BDP is not for sale,” said Arnie Bornstein, a BDP spokesman. “Our ownership and management team believe in the company’s future and is exploring opportunities with private investors to raise capital that will enable the company to build on in technology, expand our global presence and ultimately help our customers grow.
   “The infusion of capital through outside investments is a normal course of activity for privately owned companies,” he added.
   While the company is exploring raising capital from a private equity firm, Bornstein said such a relationship would be financial, not operational.
   “BDP has great confidence, our ownership has great confidence in our current management team, and they are going to continue to lead all aspects of the company’s path forward as well as general operation,” he said.
   Bornstein also said the company is not looking at a public equity offering at this time.
   Founded in 1966 by Richard J. Bolte Sr., BDP has grown into one of the country’s largest logistics companies, with annual revenue of about $1.6 billion.
   The company continues to be owned by the Bolte family under the leadership of Chief Executive Officer Richard J. Bolte Jr. His three brothers – John, Tim, and Frank – are also active in the business.
   “In essence, our owners are working to make BDP a stronger and even more effective force in international logistics for our customers,” Bornstein said. “BDP will continue to be owned and operated by the Bolte family and incumbent management team.”
   An independent industry expert contacted by American Shipper confirmed BDP is “looking for additional sources of capital as they expand and grow their business. They are not looking to do an all-out sale or anything like that.”
   The company wants additional capital to “take it to the next level,” the industry expert said.
   While BDP is particularly well known for its work in the chemical industry it is active in many other “vertical” markets, including project cargo, healthcare, oil and gas, retail and consumer goods.
   Additional capital might allow the company to make investments, acquisitions or expand geographically, the industry expert explained. Also, “by selling a portion to a private equity firm, it would potentially provide the brothers with a chance to monetize the business – get a little money without really changing anything,” the source said. “They could still run the business, still be in control, but also have a little bit of money in the bank and also have some money to reinvest in the business. I think they are exploring a lot of options.” – Chris Dupin