Warburg Pincus has agreed to invest $255 million in BlueGrace Logistics. Hyde Park Capital advised BlueGrace on the transaction. Based in Tampa, Florida, BlueGrace is a third-party logistics provider.
Riverview, FL – August 9, 2016 – BlueGrace Logistics (“BlueGrace” or “the Company”), a private third-party logistics (3PL) provider based in Tampa, Florida, announced today that funds affiliated with Warburg Pincus, a leading global private equity firm focused on growth investing, have agreed to make a minority investment of growth capital and additional funds available for strategic acquisitions. The total commitment by Warburg Pincus is $255 million.
BlueGrace intends to use the funding to fuel the rapid growth of the business, including hiring 500-700 new employees, accelerating its national expansion plans and pursuing strategic acquisitions.
BlueGrace is presently building out the remainder of its 55,000 square feet of headquarters space in Riverview, Fl., and is scouting for more space across Tampa Bay. BlueGrace expects to significantly increase employment in Tampa, Chicago, Boston and other markets.
“This investment will give a major shot of adrenalin to our already fast-growing operations,” said BlueGrace President and Chief Executive Officer Bobby Harris. “We’re helping customers transform their shipping across the country. And for me, it’s especially gratifying to see more and more employees come into the Company and find a great career.”
Bobby Harris 2Founded in 2009, BlueGrace has developed a proprietary software platform that provides customers who need to ship goods with multiple offers from trucking companies. BlueGrace tracks the shipments, costs, routes and timing, and then provides customers with detailed data about where they can save money. BlueGrace can often save millions of dollars for a client, while providing unprecedented transparency into what’s often a major expense for a company – freight.
BlueGrace works with more than 10,000 companies nationwide that make everything from auto parts and beauty products to pharmaceuticals and sporting goods. Many of the most popular products on shelves at major retailers made their way there through BlueGrace.
“Warburg Pincus has been a long-term investor in the technology-enabled logistics market and BlueGrace is a rapidly growing innovator in that industry,” commented Alex Berzofsky, Managing Director, Warburg Pincus. “We see meaningful opportunities for continued growth for the Company and we look forward to supporting the BlueGrace team.”
Through Warburg Pincus, BlueGrace received a combination of committed capital and direct investments of $255 million. Hyde Park Capital acted as advisor to BlueGrace in the transaction.
Harris founded BlueGrace in January 2009 and the company has grown rapidly ever since. Last summer, BlueGrace employed about 170 people and announced plans to add 100 new employees, but has already “significantly exceeded that,” Harris said. BlueGrace now employs more than 370 nationally and the Company will likely employ more than 1,000 people in the next several years through a combination of organic expansion and acquisitions.
This year, BlueGrace bought more than two dozen of its franchise locations across the country, and the Company is rapidly expanding in new markets, with employment in the Chicago and Boston and Los Angeles.
About BlueGrace Logistics:
Founded in 2009, BlueGrace Logistics is one of the fastest growing leaders of transportation management services in North America. As a full service third party logistics provider (3PL), BlueGrace helps businesses manage their less-than-truckload and truckload spend through industry leading technology, high level freight carrier relationships and superior insight of the complex $750 billion U.S. freight industry. BlueGrace is headquartered in Riverview, Florida with over 60 corporate and franchise locations across the U.S.
For more information, visit www.mybluegrace.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $40 billion in private equity assets under management. The firm’s active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 15 private equity funds, which have invested more than $55 billion in over 750 companies in more than 40 countries.
Within technology-enabled logistics, selected current and former Warburg Pincus investments include Coyote Logistics, MercuryGate, NewBreed Logistics and GTNexus in the U.S. and ZTO Express, ANE Logistics, Sequoia Logistica and Yunniao, among others internationally.
The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information please visit www.warburgpincus.com.