TPG expands portfolio in booming logistics market

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TPG Capital has agreed to acquire logistics company Transplace from Greenbriar Equity Group. TPG is partnering with the target's management team on the deal.

Transplace, founded in 2000 and headquartered in Fisco, Texas, provides truck brokerage, technology and cross-border trade services for the manuacturing, retail and chemical sectors. The company serves more than 1,000 shipping and fortune 500 companies, generating around $1.8 billion in annual revenue.

“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,” says TPG Capital partner Jack Daly. Financial terms of the transaction were not disclosed.

TPG Capital, based in Fort Worth, Texas, is the private equity fund of alternative investment firm TPG, which has $72 billion in assets under management. Earlier in 2017. TPG-backed Cirque du Soleil announced plans to buy the Blue Man Group.

As the e-commerce market continues to grow at a steady pace, logistics and manufacturing companies have grown into attractive targets. Recent deals in the transportation and logistics industry include: CI Capital’s acquisition of Simplified Logistics; Ridgemont Equity Partners’ purchase of Worldwide Express; and Kidd & Co.'s formation of Logistyx Technologies through the combination of three logistics software providers.

Morgan Stanley (NYSE: MS) and Hughes Hubbard & Reed LLP are advising Transplace. Kirkland & Ellis LLP is representing TPG.

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