An affiliate of CI Capital Partners LLC, a New York private investment firm, has bought Transplace, the third-party logistics and transportation management firm at Dallas of which J.B. Hunt Transport Services Inc. of Lowell had majority ownership.
Others partners with J.B. Hunt were Swift Transportation, U.S. Xpress Enterprises and Covenant Transportation Group Inc. Terms of the deal were not disclosed.
Founded in 2000 by six of the largest freight carriers in the U.S., Transplace helps its customers manage complex logistics and shipping needs by providing customized Web-based services. The company provides full transportation outsourcing, carrier contracting and negotiation, and freight brokerage services to a diversified blue chip customer base. It is one of the top 10 freight capacity brokers in the U.S. and a leading provider of 3PL services, Transplace generates revenue in excess of $700 million from approximately 650 customers.
Transplace CEO Tom Sanderson said, "We are pleased to complete a transaction that will provide Transplace with the capital to continue its internal growth and take advantage of attractive acquisition opportunities. CI Capital Partners has a long track record of growing businesses, while building value and creating attractive opportunities for employees. I would also like to take this opportunity to thank our former owners, including J.B. Hunt Transport Services Inc., Swift Transportation, U.S. Xpress Enterprises and Covenant Transport for their support since our formation in 2000. They will continue to be part of our carrier network and we look forward to a continued mutually beneficial commercial relationship."
An article in FleetOwner.com said the sale is the result of two things. It is "about how CI and Transplace both see burgeoning opportunities in the heavily fragmented $40 billion logistics market and aim to scoop up market share."
And secondly, it is "about how Transplace’s four truckload carrier owners, struggling through one of the worst freight recessions in the industry’s history, decided they needed money more than shares in one of the top 10 3PLs and freight brokers in the country," the article said.
From Transplace’s perspective, though, its purchase by CI Capital Partners opens up new opportunities, especially for growth, the FleetOwner article said.
“We could not be in acquisition mode with our former owners,” Tom Sanderson, Transplace’s CEO, told FleetOwner.
Sign up for Daily E-news
