Harris Williams Advises Worldwide Express, LLC on its Sale to CVC Capital Partners

Rhea-AI Summary

Harris Williams advised Worldwide Express on its sale to CVC Capital Partners, merging it with GlobalTranz. This transaction highlights the continuous interest from investors in the 3PL market. Worldwide Express, serving 92,000 customers, generates nearly $2 billion in annual revenue and ranks as the second-largest privately held freight brokerage in the U.S. CVC, with $118 billion under management, seeks to expand its logistics portfolio through this acquisition, supported by its coalition with Providence Equity Partners and PSG.

Positive

• CVC's acquisition aims to enhance the logistics service offering by merging Worldwide Express with GlobalTranz.
• Worldwide Express has a robust client base of 92,000, generating nearly $2 billion in annual revenue, indicating strong market presence.

Negative

• None.

Harris Williams, a global investment bank specializing in M&A advisory services, announces it advised Worldwide Express, LLC (Worldwide Express), a portfolio company of Ridgemont Equity Partners (Ridgemont), on its sale to CVC Capital Partners (CVC). Worldwide Express is a leading provider of third-party logistics (3PL) services. CVC will merge Worldwide Express with GlobalTranz Enterprises, LLC (GlobalTranz), another leading non-asset based provider of 3PL solutions. The combination is sponsored by a consortium led by CVC and GlobalTranz’s current lead investors, Providence Equity Partners (Providence) and PSG. Ridgemont, Worldwide Express management and GlobalTranz management will also retain significant stakes in the combined entity. The transaction was led by Jason Bass, Frank Mountcastle, Jeff Burkett, Jeff Kidd, Nick Petrick and Justin Icardo of the Harris Williams Transportation & Logistics (T&L) Group.

“With a compelling suite of 3PL solutions, from parcel to less-than-truckload, as well as managed transportation, the combined Worldwide Express and GlobalTranz platform will serve a wide range of customers, from small- to medium-sized businesses to global enterprises,” said Jason Bass, a managing director at Harris Williams. “We look forward to supporting the combined company in the years to come.”

“We are very proud to have worked with both of these great companies multiple times. This transaction is yet another example of the strong interest that our sector continues to generate from the investment community,” added Frank Mountcastle, a managing director at Harris Williams.

“We have a longstanding, trusted relationship with Harris Williams. Their team’s familiarity with our business model and culture, along with their unmatched 3PL sector transaction experience, made them uniquely qualified to once again serve as our lead advisor. Their guidance through the major milestones in our company’s history has been invaluable,” added Tom Madine, chief executive officer of Worldwide Express.

Worldwide Express is a full-service, non-asset-based logistics provider offering more than 92,000 customers access to industry-leading small package, truckload and less-than-truckload (LTL) shipping solutions around the world. With an annual systemwide revenue approaching $2 billion through a network of company-owned and franchise locations, Worldwide Express, combined with Unishippers Global Logistics, LLC, is the second largest privately held freight brokerage company in the country. As the largest authorized UPS non-retail reseller in the U.S., the company is a local partner for the global supply chains of small- to medium-sized businesses nationwide. This, coupled with a selective portfolio of over 65 LTL and tens of thousands of truckload carriers, provides clients with an unmatched range of options and flexibility to meet their shipping needs.

Ridgemont is a Charlotte, North Carolina-based middle market buyout and growth equity investor. Since 1993, the principals of Ridgemont have invested over $5.5 billion. The firm focuses on equity investments up to $250 million and utilizes a proven, industry-focused investment approach and repeatable value creation strategies. Ridgemont’s most recent flagship fund, REP III, was formed in 2018 and has $1.65 billion of committed capital.

CVC is a leading private equity and investment advisory firm with a network of 23 offices throughout Europe, Asia and the U.S., with approximately $118 billion of assets under management. Since its founding in 1981, CVC has secured commitments in excess of $160 billion from some of the world's leading institutional investors across its private equity and credit strategies. Funds managed or advised by CVC are invested in over 90 companies worldwide, which have combined annual sales of approximately $100 billion and employ more than 450,000 people.

GlobalTranz is a full-service 3PL provider, bringing award-winning customer service, exceptional industry expertise and market-leading technology to shippers, carriers and logistics service providers. GlobalTranz’s people-powered approach, combined with comprehensive, relationship-driven support, provides shippers of all sizes with fast and reliable, multi-modal transportation services as well as strategic supply chain solutions – enabling them to optimize efficiency and deliver on business goals. Leveraging its extensive independent agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 1 million product users and 25,000 shippers.

Providence is a premier global private equity firm with approximately $45 billion in aggregate capital commitments. Providence pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm's inception in 1989, Providence has invested in over 170 companies and is a leading equity investment firm focused on the media, communications, education, software and services industries. Providence is headquartered in Providence, Rhode Island and also has offices in New York and London.

PSG is a growth equity firm that partners with middle market software and technology enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. Having backed more than 65 companies and facilitated over 300 add-on acquisitions, PSG brings extensive investment experience, deep expertise in software and technology, and a firm commitment to collaborating with management teams. Founded in 2014, PSG operates out of offices in Boston; Kansas City, Missouri; and London.

Harris Williams, an investment bank specializing in M&A advisory services, advocates for sellers and buyers of companies worldwide through critical milestones and provides thoughtful advice during the lives of their businesses. By collaborating as one firm across Industry Groups and geographies, the firm helps its clients achieve outcomes that support their objectives and strategically create value. Harris Williams is committed to execution excellence and to building enduring, valued relationships that are based on mutual trust. Harris Williams is a subsidiary of the PNC Financial Services Group, Inc. (NYSE: PNC).

The Harris Williams Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), automotive and heavy-duty vehicle, transportation equipment, and truck, rail, marine and air transportation. For more information on the firm’s T&L Group and other recent transactions, visit the T&L Group’s section of the Harris Williams website.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.

For media inquiries, please contact Julia Moore at media@harriswilliams.com.

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FAQ

What is the significance of the sale of Worldwide Express to CVC for PNC?

The sale of Worldwide Express to CVC could potentially enhance the value of PNC's subsidiary, Harris Williams, as the transaction signifies a strong interest from investors in the 3PL sector.

How does the merger with GlobalTranz impact Worldwide Express's market position?

The merger will combine the strengths of Worldwide Express and GlobalTranz, enabling them to better serve a broad range of customers and strengthen their competitive position in the 3PL market.

What does the combined entity of Worldwide Express and GlobalTranz offer?

The combined entity will offer a compelling suite of 3PL solutions, catering to small, medium, and large enterprises, enhancing overall service capabilities.

Who are the notable investors in the Worldwide Express-CVC deal?

The transaction involves a consortium led by CVC, including Providence Equity Partners and PSG as current lead investors.

What are the expected outcomes from the acquisition by CVC?

CVC's acquisition is expected to enhance logistical service offerings, generate efficiencies, and potentially create value for stakeholders in the logistics sector.