Greatwide Logistics Services, a national provider of nonasset-based transportation and third-party logistics services, announced Wednesday, Jan. 14, that it has obtained court approval for its acquisition by an investor group that includes affiliates of Centerbridge Partners and The D.E. Shaw Group. The company expects to close the transaction within the next 30 days.
Greatwide says that upon completion of the transaction, its current debt will be reduced by $478 million, or 77 percent. According to the company, the transaction also will enhance its competitiveness and financial strength, and position it for continued growth and profitability. Terms were not announced.
“We are pleased to receive approval of this transaction, which will strengthen Greatwide’s capital structure and enhance our flexibility to continue to invest and grow,” says Raymond B. Greer, president and chief executive officer of Dallas-based Greatwide. “We are also pleased to have received this vote of confidence from our purchasers, who are familiar with the company and our prospects for the future. Our ability to restructure the company’s finances and to gain approval for this transaction in fewer than 100 days is a testament to the hard work and dedication of the men and women of Greatwide, as well as our purchasers. I appreciate the commitment to the company by our teams throughout this process.”
Greer says many transport companies are struggling in the current economic downturn and must adjust to the new realities of today’s market. “At Greatwide, we have taken very decisive action and expect to emerge from this process as one of the healthier companies in the industry,” he says. “Greatwide’s enhanced strength and flexibility positions us to continue investing for the future while delivering outstanding service for our customers. We look forward to capitalizing on the competitive advantage afforded by our success in this process.”