TPG lifts Transporeon Ebitda over 50 pct in two-plus-year hold

TPG Capital met its five-year return goal two years early on the sale of Transporeon Group, a cloud-based logistics platform for industrial professionals, sources told Buyouts.

This exit left the TPG investment team “extremely happy” as Transporeon grew both revenue and Ebitda more than 50 percent over the past three years, sources said.

The PE firm sold the company to Hg, a PE shop specializing in software and tech-enabled business market, on Jan. 29. Terms weren’t disclosed. A spokesperson for TPG declined to comment.

Transporeon, Ulm, Germany, uses real-time location and connectivity data to digitally connect shippers and carriers. The software also collects data on demand capacity, enabling it to predict supplies’ destination. This technology has ultimately replaced manual logistics coordination.

The auction process was competitive and kicked off because of interest in Transporeon’s acquisition.

TPG initially invested in Transporeon in late 2016 from its flagship fund TPG Partners VII, which closed on $10.5 billion in May 2016.

At that time, the firm invested $2.1 billion out of the fund across six companies, including Cirque du Soleil, real estate firm Cushman & Wakefield, educational software company Ellucian, integrated midstream company EnLink, Life Time Fitness and U.K. retail chain Poundworld.

With the sale of Transporeon, TPG also wanted to take advantage of the high valuation environment, a source familiar with the situation said.

Investment bankers Aiden Hallett of Barclays Capital and Alexander Hofmann of Jefferies represented TPG in the transaction. Hallett and Hofmann did not return requests for comment.

Transporeon was a “hunted asset” as it grew more than 20 percent organically each year. TPG in August 2018 also did a small add-on to the platform, acquiring TIM Consult, an international business logistics consultancy.

TPG provided guidance in structuring Transporeon’s sales team, marketing and operations. The PE firm also pulled together Transporeon’s board and added three outside members.

The investment was in line with one of TPG’s key investing themes. The firm is looking to acquire technology companies disrupting supply chain on the execution side, like Transporeon, and on the planning side, like Llamasoft, which provides supply chain modeling and design software.

Update: This story was updated to include that a spokesperson for TPG declined to comment. 

Action Item: To contact TPG Capital email: inquiries@tpg.com.