The Atlanta-based company has hired a financial firm for a possible sale that would value the business at about $1 billion, according to a Bloomberg report Monday.
The report cited anonymous sources confirming interested parties included both strategic buyers in the logistics space and investment funds.
Terra Worldwide, which was founded in 2019, offers services such as import and export shipping by air and ocean, customs brokerage and compliance, warehousing, distribution and purchase order management. The company has offices in Atlanta and Martinsville, Va. and works with businesses in the consumer and industrial space. Customer case studies on its site cite Bassett Furniture and tire distributor ITG Voma Corp.
A call to the company’s Atlanta office seeking comment on a sale was not returned Monday.
Terra Worldwide co-founder and chief operating officer (COO) Jim Briles told Bloomberg the company will “evaluate different solutions of investment capital from time to time” and its “focus is solely how do we serve our customers better.”
The report comes amid a ramp in deal activity within the logistics space the past few years as global supply chain challenges prompted more companies to look at investing in ways to make their supply chains more efficient and as risk averse and resilient as possible.
Data from BKD Capital Advisors showed merger-and-acquisition activity within the transportation and logistics space up the past couple years, with 126 deals closed in 2021. That’s up from 89 in 2020 and 84 closed deals in 2019, according to BKD.
The report cited companies’ focus on addressing supply chain risks, from both the standpoint of shippers looking to make investments in their logistics spending, and also industry companies interested in bolstering their service offerings to customers. Services that can offer shippers assistance with routing and visibility, among other ways to strengthen their supply chains, are helping to drive deals, the report said.
Terra Worldwide is no stranger to acquisitions and has been part of the industry’s more recent flurry in deal activity.
The company bought American Global Logistics in March of 2020 for an undisclosed amount. Georgia-based American Global Logistics (AGL) makes software for the supply chain industry that assists with shipping visibility and forecasting. It counts customers in the automotive, food, household products and furniture industries.
The company won a nod as Georgia’s fastest-growing, middle-market company, based on a three-year span, by the Association for Corporate Growth’s (ACG) Atlanta Chapter. The company is expected to reach $1 billion in revenue this year, according to a release at the time of the ACG announcement.
Terra Worldwide’s Briles said at the time of the American Global deal the acquisition further bolstered the company’s technology offering. The buy also brought Briles full circle in a way, given he co-founded AGL and previously served as the company’s COO and CEO.
“This is a significant step as we execute on our strategy of organic and acquisition growth, and I can think of no better person than [former AGL CEO] Chad [Rosenberg] to join us at [this] exciting time,” Briles said.
The AGL deal was followed by the purchase of Illinois-based Connect Global Logistics in December of 2020, with Connect rebranded to AGL following close of the deal.