Rotunda Capital Partners has sold its stake in Worldwide Express. Financial terms weren’t disclosed. The buyers were a group of investors, including a management team. Dallas-based Worldwide Express is a logistics company that handles package and freight shipments.
Washington D.C. and Chicago (August 5, 2013) – Rotunda Capital Partners, a middle market private equity investment firm, announced today the sale of its investment in Worldwide Express to a group of investors including a significant investment from the management team. Financial terms were not disclosed.
“We developed a strategic partnership with the Worldwide Express management team and are proud to be involved in building the company into one of the leading third party logistics providers serving the small and medium sized business market,” said John Fruehwirth, managing partner at Rotunda Capital. “The company achieved significant growth during our investment and we are pleased to provide our investors with a strong return on invested capital.”
“The company enhanced its unique sales model with investments in technology, expanded carrier relationships, and additional freight capabilities to create a compelling value proposition for its customers and carrier partners,” added Bob Wickham, partner at Rotunda Capital. “The successful exit reflects the great job management has done to position the company for continued growth.”
Rotunda Capital invested in Worldwide Express in 2009 following a difficult period in late 2008 when primary shipping partner DHL unexpectedly withdrew from the U.S. market. Company leaders established a new relationship with UPS,® and the company has since become one of the carrier’s largest authorized resellers. The company also introduced freight-shipping services in early 2009, in partnership with a carrier network that has grown to more than 55 carriers.
During Rotunda’s four-year involvement with the company, Worldwide Express significantly expanded operating margins and grew system-wide sales from $192 million to more than $550 million.
“We are pleased and proud of the growth our system has achieved over the term of Rotunda’s involvement and appreciate the strong and successful partnership that we have enjoyed with them.” added David Kiger, founder and chief executive officer at Worldwide Express.
“We are appreciative of Rotunda’s strategic guidance over the last couple of years and we look forward to building upon our successes under the new ownership structure in the years ahead,” said Tom Madine, president and chief operating officer for Worldwide Express.
About Rotunda Capital
Rotunda Capital Partners is a private equity firm which invests equity and debt capital in established and profitable lower middle market companies. As an independent deal sponsor, Rotunda Capital raises and invests the capital of its principals, family offices, and high net worth individuals on a deal by deal basis. The firm utilizes a rigorous approach to identify market-leading companies with identifiable growth opportunities and capable management teams in targeted sectors, including specialty finance, logistics and distribution, government and business services. Since 2009, Rotunda Capital has completed five platform investments and realized two exits. The partners of Rotunda Capital have collectively invested over $1.6 billion in more than 30 companies, providing experiences and deep industry and financial relationships to contribute to the successful execution of its companies’ strategic plans.
About Worldwide Express
Worldwide Express is a global logistics company based in Dallas that has handled millions of package and freight shipments for more than 30,000 small to midsize businesses. With more than 150 franchises across the country, Worldwide Express is one of the largest authorized resellers of express shipping as well as a trusted freight partner to more than 55 carriers. To learn more, visit http://www.wwex.com.