• ITVI.USA
    13,683.230
    2,931.500
    27.3%
  • OTLT.USA
    2.949
    -0.056
    -1.9%
  • OTRI.USA
    19.680
    -0.650
    -3.2%
  • OTVI.USA
    13,646.340
    2,945.470
    27.5%
  • TSTOPVRPM.ATLPHL
    2.960
    0.380
    14.7%
  • TSTOPVRPM.CHIATL
    3.710
    0.160
    4.5%
  • TSTOPVRPM.DALLAX
    1.290
    -0.010
    -0.8%
  • TSTOPVRPM.LAXDAL
    3.720
    0.010
    0.3%
  • TSTOPVRPM.PHLCHI
    2.240
    0.100
    4.7%
  • TSTOPVRPM.LAXSEA
    4.160
    0.060
    1.5%
  • WAIT.USA
    132.000
    -5.000
    -3.6%
  • ITVI.USA
    13,683.230
    2,931.500
    27.3%
  • OTLT.USA
    2.949
    -0.056
    -1.9%
  • OTRI.USA
    19.680
    -0.650
    -3.2%
  • OTVI.USA
    13,646.340
    2,945.470
    27.5%
  • TSTOPVRPM.ATLPHL
    2.960
    0.380
    14.7%
  • TSTOPVRPM.CHIATL
    3.710
    0.160
    4.5%
  • TSTOPVRPM.DALLAX
    1.290
    -0.010
    -0.8%
  • TSTOPVRPM.LAXDAL
    3.720
    0.010
    0.3%
  • TSTOPVRPM.PHLCHI
    2.240
    0.100
    4.7%
  • TSTOPVRPM.LAXSEA
    4.160
    0.060
    1.5%
  • WAIT.USA
    132.000
    -5.000
    -3.6%
Logistics/Supply ChainsMost PopularNewsTop Stories

Worldwide Express, GlobalTranz to merge

Deal creates $4 billion 3PL behemoth

Third-party logistics providers Worldwide Express LLC and GlobalTranz Enterprises LLC said Friday that they have merged in a multibillion-dollar deal arranged by a consortium led by CVC Capital Partners, which is providing most of the equity to consummate it.

The merger, expected to close sometime in the third quarter, will create a $4 billion-a-year organization that will have distinct modal strengths yet have its hand in most of the U.S. transportation pie. Both firms have strong relationships with LTL carriers. Worldwide Express is stronger in the parcel business, mainly through its longtime reseller relationship with UPS Inc. (NYSE:UPS). GlobalTranz has deeper relationships in the truckload arena. 

Worldwide Express’ customer base tilts more toward small to midsize businesses, whereas GlobalTranz is more concentrated in the enterprise segment populated with larger shippers.

Worldwide Express CEO Tom Madine will be CEO of the new company. Robert Farrell, GlobalTranz’s chairman and CEO, will serve on its board. No chairman has been named. The new company will be based in Dallas, which is Worldwide Express’ headquarters. Specific financial terms of the transaction were not disclosed.

The various private equity owners that compose the consortium will retain significant equity positions in the new company, as will management of both firms. Ridgemont Equity Partners is Worldwide Express’ lead investor and has reportedly been looking to sell the company. Providence Equity Partners and PSG are Phoenix-based GlobalTranz’s lead investors.

In the short term, the two firms will continue to operate independently, Madine and Farrell said Friday in a joint interview with FreightWaves. There is no firm plan or timetable to integrate the businesses, they said. Cross-selling opportunities will be available, subject to certain conditions, the executives said. The most visible short-term benefit will be in the expansion of information technology capabilities that will be leveraged across the new enterprise, they said.

Both companies will continue to focus on the business-to-business segment that has long been their area of expertise, the executives said. Business-to-consumer will be handled, at most, as an adjunct to the core business, they said.

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.

2 Comments

  1. Congrats Madine, Dolly, Grayson, Joel, Rose plus the hundreds of other amazing folks over there. Epic move! Cheers

  2. Excellent. Combined technologies and market niches will drive a unique and flexible powerhouse serving a wide range of customers.

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