Arcapita Bank B.S.C. announced the sale of 3PD Holding, Inc, a leading last-mile logistics company in the United States and Canada, for $365 million. 3PD was acquired by XPO Logistics Inc. (NYSE: XPO), one of the fastest growing transportation logistics companies serving North America.
Arcapita acquired a majority stake in 3PD in 2006 as a growth asset that offered significant opportunity due to the fragmented and growing demand for last-mile services in North America. Following the acquisition, Arcapita provided investment capital to 3PD, and its portfolio managers worked closely with the founders and management of 3PD to develop and deliver a strategy that propelled the business to a market leadership position despite a weak economy.
Ransom James, a Director in Arcapita’s private equity team, said, “Our partnership with Karl, Randy and the rest of the 3PD team has been a great one. We jointly navigated the business through the recession, and never lost momentum in providing high quality customer service or in building the transactional business. We grew profitability by over 70%, a testament to the stability and growth-oriented nature of this sector, of which 3PD is now the leader. The sale of 3PD to XPO is strategically the right step in the business’ development. As part of XPO, 3PD’s superb growth prospects will only be enhanced. We wish XPO and the 3PD team the best of luck.”
Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, added, “Despite the challenges of the global recession faced early in the holding period, Arcapita’s private equity team worked effectively and creatively with 3PD management and its board of directors to enhance the performance and realize the potential of the company to the benefit of investors. This excellent outcome demonstrates Arcapita’s continued ability to deliver profitable exits, even under its current circumstances.”
