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Rotunda Capital sell Worldwide Express

Rotunda Capital Partners, a middle market private equity investment firm, has sold its investment in Worldwide Express to a group of investors including a significant investment from the management team.

 
Financial terms have not been disclosed.
 
“We developed a strategic partnership with the Worldwide Express management team and are proud to be involved in building the company into one of the leading third party logistics providers serving the small and medium sized business market,” says John Fruehwirth, managing partner at Rotunda Capital. “The company achieved significant growth during our investment and we are pleased to provide our investors with a strong return on invested capital.”
 
“The company enhanced its unique sales model with investments in technology, expanded carrier relationships, and additional freight capabilities to create a compelling value proposition for its customers and carrier partners,” says Bob Wickham, partner at Rotunda Capital. “The successful exit reflects the great job management has done to position the company for continued growth.”
 
Rotunda Capital invested in Worldwide Express in 2009 following a difficult period in late 2008 when primary shipping partner DHL unexpectedly withdrew from the US market. Company leaders established a new relationship with UPS, and the company has since become one of the carrier’s largest authorised resellers. The company also introduced freight-shipping services in early 2009, in partnership with a carrier network that has grown to more than 55 carriers.
 
During Rotunda’s four-year involvement with the company, Worldwide Express significantly expanded operating margins and grew system-wide sales from USD192m to more than USD550m.
 
“We are pleased and proud of the growth our system has achieved over the term of Rotunda’s involvement and appreciate the strong and successful partnership that we have enjoyed with them,” says David Kiger, founder and chief executive officer at Worldwide Express.

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