1st Choice Delivery Acquired Controlling Stake in 4SameDay

BG Strategic Advisors Announces that 1st Choice Delivery Acquired Controlling Stake in 4SameDay

West Palm Beach, FL – November 8, 2017 – BG Strategic Advisors (“BGSA”) is pleased to announce that 4SameDay (or the “Company”) has sold a controlling stake to 1st Choice Delivery (“1st Choice”), a portfolio company of the private equity firm Northern Pacific Group (“NPG”).

Founded in 1995, 4SameDay is a premier provider of comprehensive same-day logistics solutions for time-sensitive shipments in the pharmaceutical, long-term care, entertainment, financial, print, advertising and media industries. The Company utilizes an asset-light operating model and proprietary technology to provide scheduled, routed and on demand deliveries and a full suite of value added services. 4SameDay maintains strong partnerships with its customers by generating meaningful cost savings through effective supply chain management and integrated, on-site customer service and dispatching capabilities. The Company focuses on traceability and certainty of arrival, ensuring prompt delivery of time-sensitive products.

Founders Eric Reese and Chris Carey will remain with 4SameDay and 1st Choice post close and will play important leadership, sales and business development roles.

BG Strategic Advisors, LLC acted as financial advisor and Greenberg Traurig acted as legal advisor to 4SameDay.

About 1st Choice Delivery

1st Choice Delivery is a Midwest-based, full service delivery and logistics company. 1st Choice focuses on serving the “last mile” and provides logistics services to more than 1,000 customers each day. Customers are served through a suite of logistics services including, parcel delivery, LTL delivery, on-demand delivery, inventory storage and FTL inventory repositioning.

About Northern Pacific Group

Northern Pacific Group is a private equity investment firm based in Wayzata, MN. NPG focuses on investing in lower middle market companies with attractive cash flow characteristics and strong organic growth and / or actionable acquisition strategies. NPG seeks to invest in companies where existing management and shareholders share the firm’s partnership values.

About 4SameDay

Headquartered in El Segundo, CA, 4SameDay provides same-day logistics solutions for time sensitive shipments in the pharmaceutical, long-term care, entertainment, financial, print, advertising and media industries. The Company utilizes proprietary technology and routing software to optimize customers’ supply chains, ensuring timely deliveries and efficient costs.

About BG Strategic Advisors

BGSA is the leading M&A advisory firm focused on the logistics and supply chain industry.  The firm specializes in providing CEOs in the logistics and supply chain industry with the tools to maximize their company’s value.  BGSA has completed several well-known supply chain deals, including the sales of Converge to Arrow Electronics, Dixie Warehouse Services and Wilpak to Jacobson Companies, the PWC Logistics acquisitions of Trans-Link and Transoceanic, the Churchill sale to BirdDog, the Raytrans sale to Echo Global, the Unicity sale to PBB, the Air-Road sale to Reliant Equity, and many others.

For more information, or to explore a sale, merger, acquisition, capital raise, or other strategic initiative for your company, please contact Managing Director Benjamin Gordon at (561) 932-1601, email Ben@bgsa.com, or visit www.BGSA.com.

BGSA provides investment banking services through BG Strategic Advisors LLC, a registered broker-dealer and member of FINRA and the SIPC.

ZMC Acquired Controlling Stake in IT Renew

BG Strategic Advisors Announces that ZMC Acquired Controlling Stake in IT Renew; Investment will Support IT Renew’s Continued Innovation in Data Security and Data Center Lifecycle Management

West Palm Beach, FL – November 2, 2017 – BG Strategic Advisors (“BGSA”) is pleased to announce that IT Renew has sold a controlling stake in the Company to affiliates of private equity firm ZMC. Founded in 2000, IT Renew (“ITR” or the “Company”) is a leading global IT lifecycle management solutions provider, specializing in data center decommissioning and data erasure and security services. The Company’s technology-driven approach streamlines traditional data center decommissioning processes to deliver superior data and asset security, value recovery and IT sustainability. Headquartered in Silicon Valley, IT Renew’s proprietary, software-driven platform, Teraware, was built in close collaboration with the world’s leading cloud and hyperscale datacenter operators. More than 200 customers utilize IT Renew’s solutions in over 40 countries across five continents through a global network of Company-owned and operated facilities.

Upon closing of the transaction, Aidin Aghamiri will take over as Chief Executive Officer of IT Renew and founder Mostafa Aghamiri will remain involved as Chairman.

“The ZMC team values and supports IT Renew’s mission to provide the market-leading service and best-in-class products that has defined us for the last 17 years,” said Aidin Aghamiri. “We are thrilled to have a partner who will continue to champion aggressive investments in our Company and customers, and who has a proven track record of taking technology-enabled services companies to the next level of success.”

“IT Renew has incredibly strong client relationships, industry-leading service and software, and a culture characterized by entrepreneurial spirit and accelerating momentum—all critical to our investment decision,” said Andrew Vogel, Managing Partner at ZMC. “ZMC has been impressed by the Company’s growth and is committed to supporting ITR’s investments in service and innovation. The acquisition of IT Renew emanates from ZMC’s focus on the shift to cloud computing and data security as investment themes which will continue to drive growth for the Company’s services and addressable market.”

Wells Fargo Securities, LLC and BG Strategic Advisors, LLC acted as financial advisors and Moore & Van Allen PLLC acted as legal advisor to IT Renew. Sidley Austin LLP acted as legal advisor to ZMC.

About ZMC

ZMC is a leading private equity firm comprised of experienced investors and executives that invest and manage a diverse group of media and communications enterprises. Founded in 2001, ZMC’s investment philosophy centers on operational value creation driven by targeted investment themes, deep sector expertise, and strong partnerships with industry and operating executives. ZMC approaches its investments in collaboration with management teams and has a successful track record of actively adding value to portfolio companies. ZMC is currently investing out of ZMC II, L.P. www.zmclp.com

About IT Renew

Headquartered in the heart of Silicon Valley, IT Renew supports the data erasure and data center decommissioning needs of some of the most large-scale, data-rich, privacy-focused organizations in the world. The Company’s technology-driven approach streamlines traditional data center decommissioning processes to deliver superior data and asset security, value recovery and IT sustainability. IT Renew was designated a Visionary in the Magic Gartner Magic Quadrant for IT Asset Disposition, Worldwide and named to the 2016 Inc. 5000, finishing among the top 10 percent of all ranked companies in gross revenues.

About BG Strategic Advisors

BGSA is the leading M&A advisory firm focused on the logistics and supply chain industry.  The firm specializes in providing CEOs in the logistics and supply chain industry with the tools to maximize their company’s value.  BGSA has completed several well-known supply chain deals, including the sales of Converge to Arrow Electronics, Dixie Warehouse Services and Wilpak to Jacobson Companies, the PWC Logistics acquisitions of Trans-Link and Transoceanic, the Churchill sale to BirdDog, the Raytrans sale to Echo Global, the Unicity sale to PBB, the Air-Road sale to Reliant Equity, and many others.

For more information, or to explore a sale, merger, acquisition, capital raise, or other strategic initiative for your company, please contact Managing Director Benjamin Gordon at (561) 932-1601, email Ben@bgsa.com, or visit www.BGSA.com.

BGSA provides investment banking services through BG Strategic Advisors LLC, a registered broker-dealer and member of FINRA and the SIPC.

TPG Acquisition May Take Transplace Beyond North America

Transplace to Be Acquired By TPG Capital

New Deals in Logistics with BGSA’s Ben Gordon

Logistics: The View from Palm Beach

Highlights from the BGSA Supply Chain Conference


Every January, we have the pleasure of hosting more than 200 CEOs and leaders of transportation, logistics, supply chain and technology companies at the Breakers in Palm Beach. The annual BGSA Supply Chain conference has become a great way to learn about the big trends and opportunities shaping the industry.

So what did we learn this year? I’ll post the highlights. You can also see additional details at the BGSA 2017 conference site.

In sum, we see three key themes in particular: the Trump Bump, the power of e-commerce, and consolidation.


The Trump Bump

First, let’s start with the data.

At BGSA, we track the BGSA Supply Chain Index, which is a basket of 67 companies across nine segments, including logistics, trucking, rail, supply chain technology, and all other related segments.

The BGSA Supply Chain Index grew 16% in 2016, compared with a symmetrical 16% drop last year.  The BGSA Supply Chain Index also outperformed the S&P 500, which increased by 11% this year.  All in all, it was a strong year for our sector.

Within that market basket, here are some key highlights from 2016:

  • Outperformers:
  • LTL, which increased by 46%, led by SAIA (up 98%)
  • Truckload, which increased by 36%, led by Swift Transportation (up 76%)
  • Energy transportation, which increased by 31%, led by Trimac (up 119%)

Underperformers included healthcare distribution, which dropped by 20%, led by McKesson (down 29%)

What explains this strong year for the supply chain sector?

The first factor is the Trump Bump.  Of the 16% gain in 2016, a whopping 10% came in the month of November.  The market expects a Trump Administration to be bullish for transportation and logistics.  This conclusion is based on several expectations, including (i) an increase in American manufacturing, (ii) the $1 trillion infrastructure spending announcement, and (iii) lower taxes.  The biggest beneficiaries have been trucking companies, whose operating leverage gives them the ability to benefit from a boost in demand.  Fellow conference attendees YRCW and ARCB, for instance, both spiked over 50% in the month of November alone.

The second factor is the alphabet soup of regulatory compliance.  The Electronic Logging Device (ELD) mandate, which is slated to take effect in December 2017, will require all carriers to implement electronic recording of drivers’ Record of Duty Status (RODS), to ensure compliance with Hours of Service (HOS).  Many small fleets and owner-operators lack this technology, and the market expects capacity to shrink.  As a result, pricing is starting to increase.

The third factor is improving fundamentals in transportation and logistics.  Across the board, Q4 2016 data reflects economic strengthening, and increases in both rates and volumes.  In dry van trucking, spot market rates increased 5% year-over-year.  In air freight, spot market rates increased 2%.  In ocean freight, inbound container volumes increased 9%.  Further, shipping rates have strengthened after the bankruptcy of Hanjin, with Transpacific Eastbound rates up 52%.

Going forward, we expect a strong 2017 for the industry as a whole.


The Power of e-Commerce

The second major theme driving change in the supply chain is e-commerce.  2017 may finally be the year in which logistics and e-commerce converge.  Technology-based solutions for the last mile in particular are rapidly evolving.

In 2016, both Amazon and Uber announced they were targeting logistics.  Uber declared an “Uber for Trucking” app, and made a $680 million acquisition of Otto to pursue self-driving trucks.  Amazon also signaled plans for a logistics app and may become its own global freight broker and compete directly for business.  More importantly, Amazon already spends over $15 billion on shipping, and has begun to build an Amazon logistics organization that could rival the Amazon Web Services (AWS) model.

Meanwhile, we are seeing a hothouse of innovation in tech-enabled logistics, including:

  • Drones – with commercial deliveries for Amazon, 7-Eleven, and Maersk already underway
  • Online freight booking – including disruptors like Freightos, 10-4, and uShip
  • eCommerce fulfillment – with $2 trillion of annual sales and 15% annual growth, eCommerce customers are driving demand for faster and faster fulfillment, leading to same-day and even same-hour logistics solutions from companies like Amazon Prime Now, UberRUSH, Grand Junction, Doorman, and Bringg

These innovations are only going to accelerate.  Logistics technology attracted over $5 billion of funding in 2016.  This includes deals like:

  • Chinese logistics: ZTO
  • Tracking technology: Macropoint
  • Distributed warehousing: Flexe
  • TMS: 3Gtms
  • Last-mile logistics: Bringg
  • Visibility: project44
  •  And more

These technological changes pose both threats and opportunities.  On the one hand, truck brokerage stocks like CHRW and ECHO dropped nearly 10% the week Uber and Amazon’s brokerage apps were disclosed.  On the other hand, smart supply chain companies are making investments to ensure they will be ahead of the curve.  For instance, the UPS Strategic Enterprise Fund has invested more than $400 million in disruptive technologies and businesses, ranging from drones to e-commerce fulfillment software.

We expect to see more transportation and logistics companies choose to make a portfolio of strategic investments in 2017.


Consolidation: The Party Continues

The third theme is consolidation.  Amidst all of these positive catalysts, we are continuing to witness record M&A activity across all industry sectors.

Global transportation and logistics M&A volume remained strong, with over $120 billion worth of deals.

Major deals in 2016 included several global giants:

  •  US airlines:  Virgin America Inc.’s $4.2 billion acquisition of Alaska Air Group Inc.
  • Australian ports: Investor Group’s acquisition of Port of Melbourne Corp for $7.3 billion
  • Chinese trucking: Dalian Dayang Trands’ acquisition of YTO Express for $8.8 billion
  • Italian logistics: Cassa Depositi’s $3.3 billion acquisition of Poste Italiane

Meanwhile, middle-market M&A continued to dominate in the US, with a flurry of deals such as Pilot-ATL, Calyx-TransForce, UPS-Marken, Sunteck-TTS, and others.

All of these plot lines will continue to develop over the course of this year.

In summary, we are grateful for the ability to see so many terrific people and companies in one place.

-Ben

Blackstone’s Investment in JDA

Jin Jiang International Holdings Co., Ltd

BG Strategic Advisors Announces that Jin Jiang International Has Completed the Acquisition of BGSA Client YRC Worldwide Inc.’s 50% Interest in JHJ International Transportation


West Palm Beach, FL – March 31, 2016 – BG Strategic Advisors (BGSA) is pleased to announce that Jin Jiang International Holdings Co., Ltd. (Jin Jiang International), through its subsidiary Balance Global Limited, has completed the acquisition of BGSA client YRC Worldwide Inc.’s (YRCW) 50% interest in JHJ International Transportation Co., Ltd., (JHJ). The purchase provides Jin Jiang International with 100% ownership of JHJ and completes YRCW’s strategy of divesting non-core international assets. The sale represents BGSA’s first sale of a mainland Chinese company.

In July 2011, YRCW management implemented strategies focused on increasing profitability in its North American less-than-truckload ground transportation business. In 2012, YRCW divested non-core assets including its full truckload business and a China based trucking company. The sale of YRCW’s equity stake in JHJ to Jin Jiang Investment represents the last remaining non-core international asset in this series of divestitures.

JHJ is a mainland China-based asset-light 3PL and freight forwarder providing services including international ocean and air freight forwarding, warehousing, truck brokerage, customs brokerage, supply chain management, quality control, and other asset-light 3PL services. The Company increasingly specializes in the higher-margin segments of forwarding and logistics, including the transport of oversized project cargo, integrated warehouse operations, individually engineered transportation and logistics solutions, and complete supply chain integration. JHJ has over 1,200 employees and 77 client service locations in major Chinese cities such as Shanghai, Beijing, and Wuhan.

About YRCW

YRCW, headquartered in Overland Park, Kansas, is the holding company for a portfolio of less-than-truckload (LTL) companies including YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn. Collectively, YRCW companies have one of the largest, most comprehensive LTL networks in North America with local, regional, national and international capabilities. Through their teams of experienced service professionals, YRCW companies offer industry-leading expertise in flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. YRCW is listed on the NASDAQ under the ticker YRCW.

About Jin Jiang International

Jin Jiang International is one of the leading travel and hospitality conglomerates in China, with revenue and assets of approximately USD 9 billion and 6 billion, respectively.

Jin Jiang International has three core businesses: hotel management and investment, tourist services, and transport and logistics. It holds directly/indirectly four listed corporations: Jin Jiang Hotels (2006 HK), Jin Jiang Development (A share 600754, B share 900934), Jin Jiang Investment (A share 600650, B share 900914) and Jin Jiang Travel (B share 900929).

Jin Jiang International has extensive business and equity partnership with prestigious hotel groups such as Marriott, Hilton, InterContinental, Fairmont Raffels, Accor as well as over two dozens of globally renowned corporations such as Japanese Mitsui, JTB, UK HRG, and Swiss Les Roches Hotel Management College.