The rapidly expanding 3PL solutions provider plans to close on a deal in January.
Amid solid earnings growth, GlobalTranz, a technology-driven third-party logistics solutions provider, remains on the prowl for acquisitions and plans to continue ramping up its technology.
GlobalTranz CFO Renee Krug told American Shipper that the company is currently eyeing various acquisition targets and is planning to close on a deal in January.
When considering acquisition targets, GlobalTranz looks for companies that match its culture and also focuses on companies that offer different modes and services from what it already offers, Krug said. Additionally, she noted that many of GlobalTranz’s agents want to be acquired and the company plans to continue forward with those types of acquisitions as well.
Since January 2017, GlobalTranz has made seven acquisitions, all of which were companies headquartered in the United States. These seven companies were AFN, SynchOne, AJR Transportation, Apex Logistics Group, Global Freight Source, Logistics Planning Services and Worthington Logistics.
AFN, which GlobalTranz officially acquired in October, was its most recent acquisition. The AFN purchase helped further accelerate GlobalTranz’s growth in the 3PL industry. Commenting on the integration of AFN, GlobalTranz CEO Bob Farrell told American Shipper, “It’s going extremely well. Assimilating the two companies together has been relatively easy.”
GlobalTranz has very good coverage throughout the U.S. and Mexico and a small presence in Canada, Farrell said, adding that one thing it may look at going forward is how to further internationalize the company. About half of GlobalTranz’s business comes through an indirect agent channel, many of which already work internationally, he added. Krug also noted that GlobalTranz is eyeing one acquisition internationally.
On Jan. 1, Krug is slated to become GlobalTranz’s new CEO and member of the company’s board of directors, and Farrell will be named executive chairman. Lara Stell will become the company’s next CFO.
Looking ahead, Krug said, “You’ll see a lot of updates for us on technology. We have over 140 developers who concentrate fully on further developing our tech platform.”
Farrell said the company will be releasing the next generation of its core tech platform in mid-January.
“A lot of our growth is attributed to our continued advances we’ve made in technology,” he said. “Everything we do, we do through a technology lens.”
In Q3, GlobalTranz managed to increase earnings before interest, tax, depreciation and amortization by 120 percent year-over-year, while driving revenues up 30 percent and net revenues up 40 percent.
Going forward, Farrell said, “I think there is potential for some softness in the market in 2019. That being said, we feel like we’re positioned to grow organic growth and acquired growth in 2019.”
GlobalTranz eyeing several acquisition targets
