Arcapita sells logistics firm 3PD for $365m

01 September 2013

BAHRAIN-based Arcapita Bank has announced the sale of 3PD Holding, a leading last-mile logistics company in the US and Canada, for $365 million. The logistics company was acquired by XPO Logistics, one of the fastest growing transportation logistics companies serving North America.

Arcapita acquired a majority stake in 3PD in 2006 as a growth asset that offered significant opportunity due to the fragmented and growing demand for last-mile services in North America.

Following the acquisition, Arcapita provided investment capital to 3PD and its portfolio managers worked closely with the founders and management of 3PD to develop and deliver a strategy that propelled the business to a market leadership position despite a weak economy.

Strategic initiatives undertaken to enhance value for investors included building 3PD’s strategy around the creation of a scalable, transactional business focused on e-commerce and small shippers to complement its existing core business dedicated to large retail clients.

It also involved the acquisition of four leading companies to establish 3PD as the undisputed leader in last-mile heavy goods delivery and the investment of significant capital to establish a best-in-class technology system.

“Our partnership with the 3PD team has been a great one,” said Arcapita private equity team director Ransom James. “We jointly navigated the business through the recession, and never lost momentum in providing high-quality customer service or in building the transactional business. We grew profitability by over 70 per cent, a testament to the stability and growth-oriented nature of this sector, of which 3PD is now the leader. The sale of 3PD to XPO is strategically the right step in business development.”

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