Logistics Newsletter - June 2024

M&A, JVs, and Alliances

GBA Logistics acquires The Silver X Group and Bow Distribution & Warehousing in strategic expansion

• GBA Logistics, a Preston-based company, has acquired the Silver X Group and Bow Distribution & Warehousing as part of a major expansion drive
• GBA Logistics has operating licenses for 143 trucks and 149 trailers and transports a range of goods including aircraft engines, car parts, retail and e-commerce goods, and high-value and hazardous products
• The Silver X Group, based in Alfreton in Derbyshire, specializes in road haulage, warehousing and pallet distribution
• The acquisition marked a significant milestone in the company’s expansion plans, through which it aims to become a key player in the UK and European markets

Rubicon selling fleet technology business to Rodina Capital

• Rubicon Technologies has sold its fleet technology business and issued convertible preferred stock in Rubicon to Rodina Capital, a private investment firm based in Florida
• Rubicon, which provides technology solutions for waste, recycling and fleet operations
• The total transaction value is $94.2MM, which includes upfront cash and an earnout consideration of $74.2MM payable in 2024 and a $20MM issuance of convertible preferred stock
• The transaction will ensure the company’s long-term viability, improve its balance sheet by reducing debts and provide additional liquidity to enable it to quickly achieve its business objectives, accelerate its journey to profitability in the short term and continue its long-term growth

Charthouse Holdings acquires Pronto Freight Ways

• Charthouse Holdings LLC closed its acquisition of Pronto Freight Ways, LLC 
• Charthouse Holdings, based in St. Clair Shores, Michigan, offers customized and differentiated supply chain solutions
• Pronto freight Ways, based in Taylor, Michigan, is a leading supply chain solutions provider of one-stop service for time-sensitive air freight, local cartage, drayage and warehousing
• Jeff Rogers, CEO of Charthouse, said "We are thrilled to announce the acquisition of Pronto and officially welcome our new colleagues to the Charthouse family. Pronto is an ideal partner for us. Our experience is highly complementary to Pronto's service offering. We also look forward to growing the platform by identifying other potential partners in adjacent markets that fit with our strategy."

UK freight forwarding trio acquire compatriot software provider Forward Solutions

• Three independent freight forwarding and supply chain management companies, The Cardinal Partnership, Davies Turner, and Woodland Group, acquired UK-based freight software provider Forward Solutions
• Following a comprehensive due diligence process, the trio established a joint venture holding company, Forward Computers Alliance Limited, to facilitate the acquisition from the Freight Software Group
• Forward Solutions is engaged in the development of a software platform intended to provide management solutions to the freight and logistics industry
• The acquisition underscores the growing importance of technology in the logistics sector, with companies increasingly seeking innovative software solutions to optimize their operations in a rapidly evolving landscape

Allcargo Logistics arm acquires 25% stake in Fair Trade

• Allcargo Logistics wholly owned subsidiary, ECU Worldwide N.V. has acquired 25% stake in Fair Trade for a consideration of €2.9MM
• Allcargo Logistics is an integrated logistics service provider and operates in multiple business segments multimodal transport operation, container freight station/ inland container depot, projects and engineering, contract logistics, and logistics parks
• Fair Trade is an FCL and LCL consolidation services provider, operating in Germany with offices in Bremen and Hamburg with a turnover of €13.6MM in 2023 
• Allcargo Logistics raised $21.6MM and did five acquisitions in the past three years

Shipster and Minster WMS form software alliance to support growing e-commerce

• Shipster has announced a strategic partnership with Minster WMS, a leading warehouse and distribution management software provider
• Shipster is a developer of an on-demand shipping platform designed to offer smart logistic solution
• The software alliance will create a robust end-to-end solution for Minster customers, offering new levels of automation and flexibility with packing and shipping to improve the speed and accuracy of the last mile
• James Stockton, Director for Sales and Partnerships at Shipster, said “We are thrilled to have secured a strategic partnership with Minster WMS, which has an outstanding reputation in the sector. From our early conversations, it was clear we shared the same values and ambitions: to create a seamless and real-time integration between our software solutions that help e-commerce, wholesale distribution and contract warehousing businesses increase efficiency, cost-effectiveness and offer the best customer service.”

MingZhu Logistics partners with Carbonomi Group to build high-performance satellite-based intelligent logistics network

• MingZhu Logistics Holdings Limited, an elite provider of logistics and transportation services to businesses, partnered with Carbonomi Trust, a leading investor in energy transition-related technologies and companies including satellite-based communication and IoT infrastructure
• The strategic partners will leverage their respective expertise and resources to build a high-performance satellite-based intelligent logistics network primarily targeting business and enterprise users, with fixed site and mobile coverage
• Mr. Jinlong Yang, Chairman and CEO of MingZhu, commented "As bulk commodity logistics undergoes a digital transformation and a global digital unified market emerges, the logistics sector must prioritize fortifying and thoroughly modernizing its traditional framework. This evolution offers a significant, enduring opportunity for MingZhu and Carbonomi, as there are unaddressed requirements in numerous sectors including construction, transportation, agriculture, retail, and hospitality, among others. Crucially, this collaboration seamlessly aligns with our core business and capitalizes on our established reputation in the logistics field for delivering comprehensive, end-to-end support to customers. Simultaneously, it opens up substantial avenues for generating shareholder value."

Stuart to enhance last-mile delivery for Snappy Shopper customers

• Online grocery shopping platform Snappy Shopper partnered with on-demand last-mile tech logistics firm Stuart to enhance the delivery experience for consumers and retailers
• Snappy Shopper retailers will streamline their operations and provide delivery in as little as 60 minutes after integration with Stuart’s platform. Stuart will also enable real-time tracking updates for retailers and end customers via SMS and email live tracking
• Mike Callachan, CEO and Co-founder of Snappy Shopper, said “At Snappy Shopper, we are committed to providing our customers with the ultimate convenience and satisfaction. Our partnership with Stuart further solidifies our dedication to revolutionizing the local delivery landscape. By leveraging Stuart’s platform, we can ensure that customers receive their orders faster than ever before, while supporting local businesses and communities.”

Onfleet announces integration partnerships to improve last-mile delivery

• Onfleet is partnering with Zapier and When I Work to enhance the last-mile delivery experience for its customers and their consumers by eliminating tedious manual tasks from day-to-day operations
• Onfleet is a San Francisco-based technology company specializing in logistics management software and route optimization for businesses offering last-mile delivery
• By partnering with Zapier, Onfleet’s e-commerce business customers will be able to automate order uploads and integration with platforms like Shopify, Square, Google Sheets and more third-party apps
• The When I Work integration improves driver management for businesses of all sizes, enabling Onfleet driver schedules to be automatically updated every 15 minutes to synchronize with the latest When I Work employee schedules

Sector news

Isuzu invests $30MM in Gatik to develop autonomous driving logistics business

• Isuzu Motors and Gatik AI have agreed to further enhance the development of the North American autonomous driving business
• Isuzu will invest $30MM in Gatik, forging a strong partnership between the two companies in the pursuit of realizing mobility services based on Level 4 autonomous driving
• Gatik is a startup developing technology for autonomous light & medium duty trucks for B2B short-haul logistics
• The agreement between Isuzu and Gatik is focused on the development of middle-mile autonomous driving and will include the design and development of a new chassis that ensures safety when equipped with an autonomous driving system

PAXAFE raises $9MM Series A to transform AI-powered, autonomous cold chain logistics

• PAXAFE, the company delivering AI-powered decision support for cold chain logistics, has announced a $9MM Series A funding round 
• The round was led by Framework Venture Partners with new participation from M12 (Microsoft's Venture Fund), Rosecliff Ventures, Elevate Ventures, AngelList Quant Fund, Gaingels, Mana Ventures and existing participants Ubiquity Ventures and Venture53
• This new round brings the total funding raised to date to $14MM
• The capital will be used to meet increasing customer demand, fuel product innovation and expand global operations and key partner ecosystems

FleetPulse raises 11MM in seed funding

• FleetPulse, a Chicago, IL-based trailer telematics solution provider, announced its launch as an independent company with $11MM in seed funding
• The round was led by Four More Capital
• FleetPulse provides an OEM-agnostic telematics platform that enables end-to-end visibility into trailer and cargo safety and security

Deutsche Bahn gathers bids for €15BN logistics arm

• Deutsche Bahn AG has received a handful of confirmatory bids for its DB Schenker logistics unit, which could fetch more than €15BN ($16BN) in one of Europe’s largest deals this year
• A consortium led by CVC Capital Partners Plc and Carlyle Group Inc. submitted an offer valuing the business at around €14BN 
• The private equity firms have been in talks to team up with the Abu Dhabi Investment Authority and Singapore wealth fund GIC Pte

GoodShip raises $8MM to ramp up procurement platform features

• GoodShip, an all-in-one platform for analytics, carrier management, and transportation procurement, has closed an $8MM Series A funding round
• Bessemer Venture Partners led the round, with participation from existing investors Ironspring Ventures, Chicago Ventures, Fuse VC and Cercano Management
• Since its founding in 2022, the platform has raised $15.4MM
• The investment will be used to expand the team, accelerate feature development, and support a growing roster of customers that includes many of the nation’s largest shippers

Harbor Lab raises $16MM to enhance maritime communication

• Harbor Lab has raised a $16MM Series A funding round led by European VC Atomico
• Harbor Lab is an independent maritime technology company offering an end-to-end, robust platform for disbursement analysis
• Harbor Lab’s software aims to streamline how shipping companies handle port-related costs, enabling a single individual to oversee disbursements for up to 50 vessels
• The round saw the participation from existing investors Notion Capital, Venture Friends, SpeedInvest and The Dock, and new investors Endeavor Catalyst and maritime VC TMV
• This new round brings the total funding raised to date to $22.5MM

Innovative Swedish drone delivery company Aerit files for bankruptcy

• Innovative Swedish drone delivery company Aerit has filed for bankruptcy after struggling to secure additional investment needed to continue operating
• Aerit was founded in 2021, and aimed to transform the logistics industry using cutting-edge autonomous robotic technology and an artificial intelligence-enriched drone system
• Aerit had been backed by Swedish supermarket chain ICA, Research Institutes of Sweden, and the nation’s the nation’s transport agency Transportstyrelsen

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