Funds affiliated with private equity firm Warburg Pincus have agreed to make a minority invesyment of USD255 million in BlueGrace Logistics, a private third-party logistics provider based in Tampa, Florida.
BlueGrace intends to use the funding to fuel the rapid growth of the business, including hiring 500-700 new employees, accelerating its national expansion plans and pursuing strategic acquisitions.
BlueGrace is presently building out the remainder of its 55,000 square feet of headquarters space in Riverview, Florida, and is scouting for more space across Tampa Bay. BlueGrace expects to significantly increase employment in Tampa, Chicago, Boston and other markets.
"This investment will give a major shot of adrenaline to our already fast-growing operations," says BlueGrace president and chief executive officer Bobby Harris. "We're helping customers transform their shipping across the country. And for me, it's especially gratifying to see more and more employees come into the company and find a great career."
Founded in 2009, BlueGrace has developed a proprietary software platform that provides customers who need to ship goods with multiple offers from trucking companies. BlueGrace tracks the shipments, costs, routes and timing, and then provides customers with detailed data about where they can save money.
BlueGrace works with more than 10,000 companies nationwide that make everything from auto parts and beauty products to pharmaceuticals and sporting goods.
"Warburg Pincus has been a long-term investor in the technology-enabled logistics market and BlueGrace is a rapidly growing innovator in that industry," says Alex Berzofsky, managing director, Warburg Pincus. "We see meaningful opportunities for continued growth for the Company and we look forward to supporting the BlueGrace team."
Through Warburg Pincus, BlueGrace received a combination of committed capital and direct investments of USD255 million. Hyde Park Capital acted as adviser to BlueGrace in the transaction.
Harris founded BlueGrace in January 2009 and the company has grown rapidly. Last summer, BlueGrace employed about 170 people and announced plans to add 100 new employees, but has already significantly exceeded that, Harris says. BlueGrace now employs more than 370 nationally and the company will likely employ more than 1,000 people in the next several years through a combination of organic expansion and acquisitions.
This year, BlueGrace bought more than two dozen of its franchise locations across the country, and the company is rapidly expanding in new markets, with employment in the Chicago and Boston and Los Angeles.
