Two massive logistics providers backed by well-known private equity firms are set to combine, Worldwide Express and GlobalTranz Enterprises announced on June 11.
The merger of Worldwide Express, which is the second-largest privately held freight brokerage company in the U.S., and fast-growing GlobalTranz is set to tap into a quickly consolidating industry primed for technology-minded progress through data asset delivery and analytics as customers seek an edge over competitors with their third-party needs.
GlobalTranz’s current lead investors include Providence Equity Partners and PSG. Ridgemont Equity Partners acquired Dallas-based Worldwide Express in 2017, merging its Unishippers Global Logistics portfolio company into the entity at the time.
CVC Capital Partners, which is looking to its funds to underpin the combination, is leading the consortium in the transaction.
Ridgemont and the management teams of Worldwide Express and GlobalTranz are expected to retain a significant stake upon the close of the merger.
The consortium picked Fidus Partners, William Blair, and Jefferies as its financial advisors.
Worldwide Express, which is led by Tom Madine as chief executive and Rob Rose as president, selected Harris Williams and J.P. Morgan to serve as financial counsel.
As legal counsel, Worldwide Express’ management team selected Block & McNeill, a Dallas-based boutique firm that has represented the management team in the past and was founded by Fish & Richardson alums.
CVC tapped Dechert as legal advisor, while Providence turned to Weil, Gotshal & Manges and Ridgemont selected Kirkland & Ellis.
Boston partner Kevin J. Sullivan led the Weil private equity team along with Dallas partner Richard Frye, Boston counsel Jakub Wronski and Boston associate Emily Willey.
For Dechert, corporate and securities partners Mark Thierfelder, Gareth Clark and Jonathan Kim of New York and Allie Misner Wasserman of Philadelpia led the deal team, along with associates Barrett Schitka of New York and Michael Gordon of Philadelphia.
Charlene York serves as Worldwide Express’ general counsel.
Financial terms of the transaction were not disclosed, but Worldwide Express has been edging towards $2 billion in revenue and Phoenix-headquartered GlobalTranz publicly stated plans to target $1.9 billion in revenue this year.
The transaction is expected to close in the third quarter.