Littlejohn & Co. has agreed to sell its portfolio company Newgistics, a provider of technology-enabled parcel logistics, to Pitney Bowes for approximately $475 million. Littlejohn acquired Newgistics in 2013.
Newgistics is a provider of parcel logistics and related services to the e-commerce and direct-to-consumer retail industry. The company’s systems and services include e-commerce development, data analytics, relationship management, systems integration, fulfillment, parcel delivery and returns management. The company is headquartered in Austin, TX (www.newgistics.com).
Newgistics is best known for its returns-processing capabilities and provides its ecommerce services to nearly 500 retail clients. It is a workshare partner of the United States Postal Service and processes nearly 100 million parcels annually, including more than 50 percent of all Parcel Returns Select packages shipped through the USPS. It’s parcel services and ecommerce logistics network includes nine operating centers and an asset-light national transportation network of more than 50 partners.
During Littlejohn’s ownership of Newgistics the firm made investments in software development, new products, automation and expanded the company’s international network which is now Newgistics’ fastest growing segment. The net effect of Littlejohn’s efforts is that the company had a greater than 50% increase in both revenue and EBITDA since 2013.
“Newgistics is an outstanding business and we are proud to have supported the company’s growth and mission to deliver best-in-class omni-channel commerce solutions,” said Edmund Feeley, a Managing Director at Littlejohn. “Over the course of our partnership with Newgistics, the company has been transformed into the leading player in the rapidly evolving and expanding e-commerce, logistics and fulfillment sectors. The company’s accomplishments over the past four years are representative of the value we look to create and actively support in our portfolio companies. It has been a great pleasure working with the Newgistics team and we wish them continued success as part of Pitney Bowes.”
Littlejohn makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth. The firm invests from $50 million to $150 million of equity in middle market companies that have annual revenues of $100 million to $800 million. Littlejohn invests across a range of industries and acquires manufacturers, distributors, and service providers. The firm is currently investing from Littlejohn Fund V which has $2 billion in capital commitments. Littlejohn is based in Greenwich, CT (www.littlejohnllc.com).
“Littlejohn has been an instrumental partner in helping us execute on our growth plan,” said Todd Everett, President and Chief Executive Officer of Newgistics. “With their support, we made great progress in capitalizing on the tremendous opportunities from the growth of e-commerce, by developing new capabilities, significantly growing our revenue and earnings, adding new customers, and globalizing our portfolio of services. We wish the Littlejohn team well and look forward to our next chapter as part of Pitney Bowes.”
The acquisition of Newgistics will accelerate Pitney Bowes’ expansion into the US domestic parcels market at scale, enabling the company to deliver a broader range of consumer-focused ecommerce and parcel management services to retailers, small and medium businesses, and enterprise clients.
Pitney Bowes (NYSE:PBI) is a provider of ecommerce services, shipping and mailing products, customer engagement and customer information management. Revenues in 2016 were approximately $3.4 billion. Pitney Bowes is headquartered in Stamford, CT (www.pitneybowes.com).
Goldman Sachs was the financial advisor to Littlejohn. The transaction is expected to close in the late third or early fourth quarter of 2017.
© 2017 Private Equity Professional | September 7, 2017
