Bluejay Capital bullish on warehousing with BWT investment

Bluejay founding partner Putterman eyes tripling BWT's revenues over the next five years or so.

Bluejay Capital Partners, an investor in the logistics sector, announced on November 29 the acquisition of Best Warehousing and Transportation (BWT), which operates from 30 locations across 15 states. Based in Atlanta, BWT continues to be led by its current chief executive, Winston McDonald, who also retains a stake in the business.

Bluejay was founded in 2020, and all its partners had prior experience as owners or operators of logistics and transportation businesses. The investment firm has offices in Jacksonville Beach, Florida, and Denver. PE Hub spoke with Bluejay founding partner Josh Putterman about the BWT acquisition and the ongoing need for logistics businesses.

Demand for warehouses has soared over the last few years, a trend accelerated by the growth of e-commerce during the pandemic. Even as lockdowns have ended and some supply chain issues have been resolved, Putterman expects demand to continue. As a sign of ongoing business for BWT, he cited the company’s multi-year contracts with customers.

Bluejay was drawn to back BWT for several reasons. Putterman was impressed by BWT’s growth, its ability to court big-name customers, its breadth of services and its ability to operate from 15 states.

Josh Putterman, Bluejay Capital Partners

Putterman described several areas of potential growth for BWT: adding new customers; extending warehousing services; growing the transportation arm of the business; especially short-haul shuttling; developing dedicated transportation for specific clients; and expanding the brokerage side of the business. “Those are all things that our team has great experiences with,” he said.

Even as fears of a recession mount due to the tightening macroeconomic environment, Putterman is confident about BWT’s prospects. “We have more opportunities coming our way,” he said, in comparison to risks that might erode business in the foreseeable future.

However, challenges with securing labor is one pain point that Bluejay is seeking to overcome with the BWT investment.

Putterman said that one of Bluejay’s strenghts is that it has experienced team members and board members within the logistics sector who can guide BWT’s investment to more profitability.

For growth, he said the firm will focus on organic means because “we think we have lots of opportunities with our existing clients to expand further with them.” He also said BWT will be scaled through acquisitions to increase its geographic footprint.

And with that amount of growth in sight, Putterman said Bluejay will also seek to make BWT a platform investment. “I think our combined line of sight with our CEO and partner is potentially to triple revenues in the next five years or so.”