STG Logistics, a transloading and containerized freight services provider, announced a $300 million capital infusion. The new debt and equity financing package will provide the company “with significant capital to fuel its ongoing expansion and strategic growth initiatives.”
STG’s private equity sponsors (Wind Point Partners, Duration Capital Partners and Oaktree Capital Management) backed the new financing deal along with lenders, according to a news release.
No further details about the transaction were provided.
The new investment will allow the Chicago-based company to expand its service offering and improve operations. It may also be used for acquisitions, which have been an integral part of STG’s growth story.
In 2022, STG acquired XPO’s (NYSE: XPO) intermodal operations in a $710 million deal. That acquisition allowed the logistics service provider to vertically integrate by adding 11,000 containers, 5,200 chassis and 2,200 owner-operators (tractors) to its network. The additional assets removed STG’s reliance on third-party capacity, which was a major headwind during the pandemic, making the company a port-to-door logistics provider.
“The strong commitment from our shareholders and financial partners not only reinforces confidence in STG’s long-term strategic vision, but also strengthens our position to navigate the current freight market challenges,” said STG CEO Paul Svindland in a release. “We are grateful for the continued support from our stakeholders and look forward to leveraging this capital to drive both organic and inorganic growth in the years ahead.”
