As a principal funding source behind contract logistics firm
New Breed Logistics, freight broker Coyote Logistics LLC,
technology firm GT Nexus, and transportation software
provider MercuryGate International Inc., Warburg Pincus
LLC is one of the sharpest and most seasoned tools in the
supply chain private equity shed.
So New York-based Warburg must have seen something
in BlueGrace Logistics LLC, a seven-year-old freight broker
and enterprise solutions provider based in Riverview, Fla.,
that prompted it to shell out $255 million for an undetermined stake in the company. Warburg Pincus said it would
use the funds to make a “minority investment of growth
capital” in BlueGrace and to give the broker dry powder for
future acquisitions.
The investment, made in August, is considered a big
commitment to a company like BlueGrace, which operates
out of 60 company-owned and franchised locations in the
U.S. It validates the efforts and persona of Bobby Harris,
the company’s 42-year-old founder, president, and CEO.
BlueGrace was an early and all-in adopter of technology,
especially in the hidebound less-than-truckload (LTL)
space. That quality made it attractive to Warburg Pincus.
In a statement, Warburg Pincus Managing Director Alex
Berzofsky said the company “has been a long-term investor
in the technology-enabled logistics market, and BlueGrace
is a rapidly growing innovator in that industry.”
Harris is also considered one of the brokerage communi-
ty’s most dynamic players, a factor that endeared BlueGrace
to Warburg Pincus. “They invest in the CEO,” said Jett
McCandless, co-founder and CEO of project44, a Chicago-
based logistics IT firm. “And now they think Bobby is the
best CEO to bet on.”
According to McCandless, Warburg Pincus thinks
BlueGrace could become the next Coyote, which was
founded by Jeff Silver, another high-profile brokerage
executive. Atlanta-based UPS Inc. bought Chicago-based
Coyote in July 2015 for $1.8 billion, the largest acquisition
in UPS’s history.
BlueGrace said it expects to significantly increase employment in Tampa, Fla.; Chicago, Boston, and other markets.
The company, which currently has 370 employees, expects
that number to surpass 1,000 during the next several
years through a combination of organic expansion and
acquisitions.
Warburg Pincus shells out $255 million for broker
BlueGrace Logistics
Supply chain service provider NFI has acquired United
Express. … Power Packaging, a DHL Supply Chain
company and part of Deutsche Post DHL Group, has
achieved a Safe Quality Food Level 3 certification at
all five of its manufacturing facilities. … In an effort to
show its support to all those affected by the Alberta
fires, TVH has donated 3 percent of the sales generated on June 2 to the Canadian Red Cross’s Alberta Fires
Appeal. … Intelligrated’s July
21 installment of its “On The
Move” educational webinar
series explored the implications
of the e-commerce-driven shift
from rigid cartons to polybags.
… FedEx Freight has launched
in the U.S. its new flat-rate freight box option, designed
to simplify the transportation of LTL shipments. The
FedEx Freight box packaging is included in the flat-rate
cost and comes in two sizes, a standard-sized freight box
that requires a pallet to ship, and a smaller freight box
with an integrated pallet. … Supply chain management
software company Tecsys Inc. has reported a 20-percent
dividend increase for its fourth quarter and fiscal year
2016, which ended April 30. … As part of its ongoing
commitment to hiring military veterans, Averitt Express
recently pledged to add 1,200 veterans to its driving
force by 2020. … Florida’s Port Manatee has welcomed
the M/V Queen B as the new containership for World
Direct Shipping’s swift cross-Gulf service with Mexico. …
Mitsubishi Caterpillar Forklift America Inc. recently cel-
ebrated its 24th anniversary. … In June, transportation
and logistics service provider Schneider held its annual
Technician Skills Competition, a contest designed to
reward top technicians and work toward continuous
improvement of equipment and processes. … Akro-Mils
has issued its 2016 Medical and Pharmacy Products cata-
log. … Raymond Handling Concepts Corp. has been cer-
tified as a great workplace by the independent analysts
at Great Place to Work. … Fortna, a professional services
and engineering firm, has celebrated its 70th anniversa-
ry. … Kenco Logistics, which is already breaking ground
in the logistics industry with its Innovation Labs, is now
crowdsourcing from its work force to develop innovative
supply chain solutions.
short takes
INTELLIGRATED
