Two Sigma Impact acquires Eclipse Advantage

Two Sigma Impact, the impact investing business of Two Sigma, has acquired Eclipse Advantage (Eclipse), a provider of outsourced supply chain workforce solutions specialising in servicing warehouses and distribution centres across the US and Canada. 

Financial terms of the transaction have not been disclosed.
 
Founded in 2003, Eclipse employs approximately 5,000 workers, or “industrial athletes”, to fill the gap in the large and growing outsourced distribution labor market. The Company has enjoyed year-over-year growth for nearly two decades and partners with Fortune 1000 companies to improve supply chain productivity and efficiency. Eclipse provides a comprehensive suite of labor services in more than 150 locations across the US and Canada, and is focused on a wide array of end markets.
 
The partnership will help expand and diversify Eclipse’s growth opportunities, fuelled by widespread talent shortages and long-term market tailwinds such as increased e-commerce adoption and growing utilisation of outsourced labor. Two Sigma Impact will build on the Company’s strong culture and employee relations by introducing digitally-powered workforce-enhancement tools and analytics to attract and better retain Eclipse’s industrial athletes and internal staff.
 
“Since inception, we’ve provided market-leading supply chain workforce solutions to ensure businesses are operating as efficiently and productively as possible, all while creating quality jobs. As we work through disruptions in the labor force, we’re proud to be part of the solution and remain committed to offering access to talent at predictable costs,” says Pete Westermann, Chief Executive Officer of Eclipse. “We’re thrilled to partner with a like-minded organisation such as Two Sigma Impact that recognises the value of employee engagement and wellbeing. We look forward to continuing our decades of growth alongside Two Sigma Impact, and to leverage their data science capabilities to complement our innovative technology to help grow our customer base and identify the best talent.”
 
“We are excited to partner with a company that is closely aligned with our workforce impact mission and dedicated to creating good jobs while developing talent that will drive our economy forward,” says Ian Blasco, Partner at Two Sigma Impact. “For decades, Eclipse has bridged the gap between workers and employers, and over the past year they’ve been on the frontlines confronting the labor shortage caused by Covid-19. Eclipse is a people-based business where the ability to attract and retain workers is critical to the success of the business. We plan to build on their strong foundation by investing to improve employee and employer alignment, while at the same time leverage our data and technology capabilities to advance the employee and customer experience through enhanced workforce analytics, market assessments and sales infrastructure.”
 
The acquisition of Eclipse is Two Sigma Impact’s fourth investment since the launch of the business in late 2020, following investments in workforce development pioneer Penn Foster, leading B2B personal care e-commerce provider Wholesale Supplies Plus and in-home paediatric therapy leader Circle of Care. Two Sigma Impact is focused on investments in four core sectors—Healthcare, Education & Training, Consumer, and Tech-Enabled Business Services—where it believes it can scientifically leverage investing in human capital as a driver of value-creation.
 
Citizens M&A Advisory served as exclusive financial advisor to Eclipse Advantage, with Freeport Financial Partners providing financing for the transaction.

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