SEKO Logistics partners up with Greenbriar Equity Group LLC for future growth plans

Chicago-based third-party logistics (3PL) services provider SEKO Logistics said last week it has chosen a private equity partner to help with its future company growth plans.

SEKO said New York-based private equity firm Greenbriar Equity Group LLC, which has more than $2 billion of committed capital in companies in the global transportation industry, including logistics, distribution, and, freight, among others, will serve as its private equity growth partner.

Established in 1976, SEKO offers shippers various supply chain services, including forwarding, transportation, logistics, software and warehousing, as well as more than 120 offices in 40 countries.

SEKO officials said that CEO William J. Wascher will continue in this role, adding that existing shareholders will maintain significant ownership going forward. The company also said that the senior management teams of all of the global operating subsidiaries of SEKO will also continue in their current leadership roles.

In an interview with LM, Wascher said SEKO saw this partnership with Greenbriar as a natural next step in the evolution of the company.

“In order to facilitate and accelerate our growth in some key areas, we wanted to evaluate all options but only select the path that would be a perfect fit for our strategic partners, customers and employees,” he explained. “Greenbriar’s partnership is that perfect fit.”

Regarding how this announcement could impact things from a SEKO service perspective, Wascher explained that the only changes its clients will see are more investments from the SEKO side for continuous growth and scalability at a quicker pace.

As an example of that, he said that leading up to partnering with Greenbriar SEKO had made significant investments in the Los Angeles market that included a new facility in April. 

“This facility is located near the airport and port, which has more than doubled the size of our operation to better support our growth in e-commerce exports out of LAX, Home Delivery for the LAX market, and traditional cross-dock services for our freight forwarding clients,” he explained.  “This also allows for easy access to the LA/LB ports with more dock doors.  Additionally, we have opened up new facilities further inland in Riverside, CA (2014) and now our Omni-Channel Logistics facility in Chino, CA (2015) to enhance ongoing warehousing and fulfillment operations at a lower cost for retailers and eCommerce clients. Our clients will see more of these types of investments that will allow us to better service our clients’ growth and the growth of e-commerce in general in the marketplace.”

Long-term plans for SEKO through this partnership cited by Wascher include continued global expansion as it looks to grow more in markets where it already is––in markets like China, Germany, and Indonesia.  And he added that SEKO is also looking to open new locations in markets like Eastern Europe, South America, and West Africa in order to continue its goal of globalization. 

“Our continued investments in our growing portfolio of in-house developed Software as a Service (SaaS) solutions, such as TMS, PO Management, and WMS will provide additional features in the coming years and this will be a core service offering that clients will see more of as an alternative to the software-only providers in the market,” he said. “Our ‘playbook’ does not change, but is rather enhanced in order to achieve or goals quicker of being the top-of-mind mid market leader of integrated logistics services coupled with sophisticated software solutions for retailers and manufacturers.  One of the reasons they invested in SEKO was because of our strategy, leadership and success to date, and we are looking to accelerate that growth and award-winning success in the future.”

Financial terms of the transaction between SEKO and Greenbriar were not disclosed.

“SEKO plays a critical role in customer supply chains domestically and internationally,” said John Anderson, Advisory Director at Greenbriar, in a statement. “The Company’s proven management team and global strategic partner network position the Company for exceptional long term growth. We are excited about SEKO’s differentiated solutions, which include expertise in the omni-channel retail, e-commerce, home delivery, medical technology, and international forwarding sectors.”