Labor shortages are adding to mounting global supply-chain problems. There is a shortage of dock workers to unload ships and truck drivers to transport them. The result is a bottleneck of ships waiting to dock at ports. But the good news is, there is technology to help solve these problems and PE firms want to invest in it.
In November, Ridgemont Equity Partners invested in eShipping, a tech-enabled provider of managed transportation logistics services to mid-sized shippers. The target’s software helps with trucking brokerage, last-mile and warehousing services. With labor shortages, companies need all the technology help they can get.
“The company’s offerings play an important role in today’s increasingly complex supply chain, especially for medium-sized customers, as the eShipping platform has consistently delivered savings and enabled growth by facilitating more streamlined supply chain management,” says Ridgemont partner Charles Anderson, adding that the two companies will pursue M&A.
In another deal announced Wednesday, AIT Worldwide Logistics said it is buying last-mile delivery company Select Express & Logistics. The majority of Select’s customers use the company’s app to schedule appointments and track deliveries. The company said it has access to more than 1,100 drivers which will minimize supply chain constraints and offer better service to its customers.
For the upcoming January issue of Mergers & Acquisitions, I will be looking at how private equity firms are investing targets that solve supply chain problems. If you are PE investor looking to invest in tech-enabled logistics companies that will help solve supply chain issues, I would love to discuss. E-mail me at: [email protected]
– Demitri Diakantonis