TPG Capital has signed an agreement to acquire Transplace, a provider of transportation management and other third-party logistics services, from Greenbriar Equity Group which acquired the company in May 2013 from CI Capital Partners. The acquisition of Transplace is TPG’s third investment in the supply chain space in the past twelve months.
Transplace, with annual revenues of approximately $1.8 billion, is a provider of non-asset based third party logistics, intermodal and truck brokerage services. The company provides full transportation outsourcing, carrier contracting and negotiation, and freight brokerage services to more than 1,000 mid-market shippers and Fortune 500 companies. The company, led by President and COO Frank McGuigan, was founded in 2000 and is based in Frisco, TX (www.transplace.com).
“As customer expectations for fast and transparent service and delivery increase, the supply chain is quickly becoming more complex. As a result, many companies have started to outsource freight spend in order to achieve better procurement at a lower operating cost,” said Jack Daly, Firm Partner and Global Head of Industrials and Business Services for TPG Capital. “Transplace is providing an expansive, high-quality, customizable solution for managing today’s supply chain and we believe Transplace is well-positioned to thrive from the immense technological change happening within logistics today.”
This investment marks TPG’s third investment in the supply chain space within the last year. In May 2017, TPG Capital acquired LLamasoft, a provider of supply chain modeling and design software. This transaction followed the firm’s August 2016 investment in Transporeon, a provider of a cloud-based industrial logistics platform.
During Greenbrier’s ownership term of Transplace four add-on acquisitions were completed: Laser Ramos Gil, a Mexico-based provider of cross-border freight management services, was acquired in August 2016; Lakeside Logistics, an Oakville, ON-based provider of logistics services, was acquired in November 2016; M33 Integrated, a Greensboro, NC-based third party logistics provider serving the packaging, chemical and advanced materials sectors, was acquired in September 2015; and Logistics Management Solutions, a St. Louis-based third-party logistics provider with a focus in the chemical and industrial manufacturing sectors, was acquired in November 2014.
“We want to thank the entire Transplace management team for an outstanding partnership. It’s been a pleasure supporting the company through a period of tremendous expansion and we believe Transplace’s future has never been brighter,” said Jill Raker, Managing Partner of Greenbriar.
Greenbriar Equity Group invests from $50 million to $150 million per transaction in the global transportation industry, including companies in aerospace & defense, automotive, freight & passenger transport, logistics & distribution, and related sectors. The firm manages $2.5 billion of committed capital and is based in Rye, NY (www.greenbriarequity.com).
TPG was founded in 1992 and makes investments throughout North America, Europe, Asia and Australia. Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare. In May 2016, TPG held a final close of its latest fund, TPG Partners VII, LP, with $10.5 billion in commitments. The firm has offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, Seoul, and Singapore (www.tpg.com).
Morgan Stanley & Co. was the financial advisor to Transplace and Greenbriar on this transaction.
© 2017 Private Equity Professional | August 15, 2017
