Logistics Newsletter - January 2025

Key Multiples

Summary

• EV/'24 EBITDA multiples: 4PL, 3PL, and Fulfillment trade at 10.1x; On-Demand Delivery at 16.0x; Asset Tracking and Management at 10.7x; ERP and Inventory Management at 30.5x; and Other Supply Chain Management (SCM) at 33.6x
• Market Trends: In December, the Dow Jones Transportation Average Index (^DJT) declined by 9.4%, outperforming the steeper 22.1% decline in On-Demand Delivery EV/'24 EBITDA multiples. Meanwhile, Asset Tracking and Management multiples experienced a marginal 0.2% increase during this period
• December earnings (mixed): Of six companies reviewed, three exceeded or met analyst revenue estimates, while four met or exceeded earnings expectations
• M&A activity in December 2024: Notable deals include Fura acquiring Pinwheel Logistics, Scan Global Logistics (SGL) acquiring ITN Logistics Group, ADL Final Mile acquiring Henry Industries, Cart.com acquiring OceanX, Priority Courier Experts acquiring Now Courier, DHL Supply Chain acquiring a controlling stake in Brandpath
• Notable financings: OneRail ($42MM), Slip Robotics ($28MM), Cofactr ($17MM), Vooma ($16MM) and HappyRobot ($15.6)

In-person events and media coverage

• Upcoming Events: Join our Managing Director, Fermin Caro and Managing Partner, Aron Bohlig, in Las Vegas for Manifest, February 10 – 12, and Chicago for ProMat, March 17-20 where they will share industry insights logistics leaders and institutional investors

• 2025 strategic planning: We are pleased to offer our insights and perspectives on the near to mid-term market and investor landscape. Please reach out to [email protected] if you’d like a consultation on potential strategic investors and/or buyers along with a view on valuations you can expect

M&A, JVs, and Alliances

Fura acquires Pinwheel Logistics

• Fura, a digital freight broker, acquired Pinwheel Logistics, a company specializing in freight brokerage services for the food and beverage industry
• This acquisition aligns with Fura's strategy of expanding through acquisitions and partnerships
• “With this acquisition, we demonstrate Fura’s commitment to growth and innovation, even in a down market,” stated Jeff Dangelo, Co-founder and CEO at Fura. “Our model enables us to acquire freight brokers without a traditional EBITDA multiple considering the market downturn”
• The deal marks Fura’s third brokerage acquisition after Chaos Logistics and AOK Freight
• Fura has raised $10MM to date

SGL acquires ITN Logistics?

• Scan Global Logistics (SGL) acquired ITN Logistics Group, a leading privately owned Canadian freight forwarder
• ITN offers a comprehensive suite of global logistics solutions across various modes of transport
• The acquisition will help SGL gain access to additional scale, expand its network of locations, and increase its market share in Canada
• Allan Melgaard, Global CEO of SGL, said “Acquiring ITN is a strategic move that enhances our presence in Canada and North America. We have worked with ITN for many years, and the ITN organisation’s focus on the customer, as well as their entrepreneurial spirit, aligns very well with ours. It will be a delight to welcome all the skilled talent with deep industry expertise to our organization”
• SGL has made ten acquisitions in the past three years and raised $1.5BN to date

ADL Final Mile acquires Henry Industries

• ADL Final Mile, a final mile delivery company acquired Henry Industries
• Henry Industries is a leading provider of customized and final mile logistics services in the states of Illinois, Missouri, Kansas, Arkansas, Oklahoma, and Texas
• The acquisition strengthens ADL Final Mile's network by expanding and densifying its presence across the Midwest and South-Central U.S., enhancing services for both new and existing customers
• "Henry Industries is another great addition to the ADL Final Mile network, both strategically and culturally, as we continue executing our strategy of expanding and densifying across the Midwest and South-Central U.S.," said Monte O'Hara, Chief Executive Officer of ADL Final Mile. He continued, "Henry Industries will leverage our existing infrastructure in Missouri and Kansas and expand our services for both our new and existing customers"
• ADL Final Mile has made 1 acquisition in the past three years

Cart.com acquires OceanX?

• Cart.com acquired OceanX, the fulfillment operations arm of Guthy-Renker
• OceanX is an e-commerce fulfillment provider for beauty and wellness brands
• This strategic move strengthens Cart.com's position in the mid-market enterprise logistics sector, particularly for high-volume beauty, wellness, and lifestyle brands
• This acquisition adds 200 OceanX employees and two facilities to Cart.com's operations, enhancing supply chain visibility and efficiency. Iconic brands like Meaningful Beauty, Smileactives, and Westmore Beauty will benefit from this expanded capability?
• “This acquisition is a strategic step in scaling our platform and capabilities across industries,” said Omair Tariq, Cart.com’s Founder & CEO. “By integrating OceanX’s infrastructure with our technology, we will deliver superior results for our clients”
• Cart.com has made four acquisitions in the last 3 years and raised $759.2MM to date

Priority Courier Experts acquires Now Courier

• Priority Courier Experts (PCE) acquired Now Courier, an Indianapolis-based parcel and local delivery service provider operating across the Midwest
• This acquisition will enable PCE to enhance its expedited transportation capabilities and expand its geographical reach within Indiana and surrounding areas
• “Bringing NOW into the PCE family not only enhances our geographic reach and service offerings for existing customers and partners with a more expansive footprint, it also unlocks new growth opportunities that will benefit all local customers, employees, and independent contractors. This acquisition illustrates our vision of creating a robust network of expedited freight partners that deliver exceptional service and innovative solutions,” said Mark Cossack, CEO of PCE

DHL Supply Chain acquires controlling interest in Brandpath

• DHL Supply Chain acquired a controlling stake in Brandpath, an e-fulfillment solutions company
• Brandpath is an e-fulfillment solution provider to major e-commerce businesses and brands such as Google, ShipBob, Localised, Truly, PRS, and Jessops
• This strategic move allows DHL to offer enhanced services to its clients, particularly to small and medium-sized businesses
• Saul Resnick, CEO of DHL Supply Chain UK and Ireland, commented, “Brandpath’s proposition is highly compelling in today’s market where new, ambitious e-commerce brands are looking to achieve major global success. When you combine Brandpath’s customer focus and flexibility with DHL’s scale, breadth and expertise, you have a complete and accessible fulfillment solution that enables any e-commerce business to compete on the world stage”

Sector news?

OneRail raises $42MM in Series C

• OneRail, a last-mile delivery solutions provider, raised $42MM in a Series C funding round
• The round was led by Aliment Capital, with participation from eGateway Capital and Florida Opportunity Fund, as well as existing investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels, and Mana Ventures
• The company plans to use the funds to advance its SaaS platform OmniPoint, drive product development, and expand its team
• The new investment brings its total funding to $109MM

Slip Robotics raises $28MM Series B financing?

• Slip Robotics, a leader in automated truck-loading solutions, raised $28MM in a Series B funding round
• The round was led by DCVC with participation from Eve Atlas, Tech Square Ventures, Hyde Park Venture Partners, Overline, and Pathbreaker Ventures
• The new funding will be used to expand its team to support rapid growth, increase deployments, and enhance its product offerings
• “Modernizing loading and unloading is an enormous problem waiting to be solved. Slip Robotics is driving a level of change in the supply chain industry not seen since the containerization of sea freight,” said James Hardiman, General Partner at DCVC. “Their solutions are not just theoretical—they work, and they deliver value and scale today”
• Slip has raised $45MM to date

Cofactr raises $17MM Series A funding

• Cofactr, a supply chain and logistics management platform raised $17.2M Series A funding round
• Cofactr's platform serves over 50 companies, including hardware manufacturers and R&D teams from major enterprises, spanning high-compliance sectors like aerospace, defense, and medtech, as well as consumer-facing industries
• Bain Capital led the round with participation from existing Seed investors Y Combinator, Floating Point Ventures, Broom and DNX
• The company will use the funding to build on this momentum by scaling go-to-market efforts and growing its suite of supply chain risk management and process tools
• “Traditional supply chain management has left serious gaps for innovative companies navigating the electronics and mechanical spaces. We’re filling them by creating a seamless link between Product Lifecycle Management, Enterprise Resource Planning and Manufacturing Execution Systems.” said Matthew Haber, CEO and Co-founder of Cofactr
• The new investment brings Cofactr’s total funding to $28.8MM

Vooma raises $16MM in Seed and Series A funding

• Vooma, an AI platform designed for freight brokers and carriers of all sizes, raised over $16MM in a Seed and Series A funding
• The amount consisted of $13MM in Series A funding led by Craft Ventures and $3.6MM in a seed round led by Index Ventures with participation from angel investors including founders and executives from companies such as Motive, Project44, Ryder and Uber Freight?
• The new funding will be strategically invested to expand Vooma's team across key areas such as engineering, go-to-market, and customer success, enabling the company to effectively meet the growing demand for its AI-powered products
• “The United States moves approximately 11.5BN tons of truckloads annually, and moving freight from point A to B requires hundreds of touchpoints between shippers, brokers and carriers,” noted? Jesse Buckingham, former CEO of ASG LogisTech. “By introducing AI that fits naturally into existing systems, workflows and communication channels used across the industry, we are meaningfully reducing the tasks people dislike and freeing up their time and headspace for more meaningful and complex challenges”

HappyRobot raises $15.6MM Series A funding

• HappyRobot, a pioneer in AI-powered voice solutions for the logistics sector, has secured $15.6MM in Series A funding
• HappyRobot's conversational AI platform leverages advanced AI technology to streamline logistics operations, particularly addressing the intricate communication challenges in freight brokerage
• The round was led by Andreessen Horowitz, with participation from Y Combinator and strategic industry investors, including RyderVentures
• "Our mission is to redefine the economics of the freight industry by harnessing the power of agentic AI," said Pablo Palafox, HappyRobot's Co-founder and CEO. "This funding will enable us to accelerate product development, expand and support our customer base, and ultimately transform how logistics businesses operate"

FedEx Freight spinoff to create the largest LTL carrier

• FedEx Corp. announced its intent to spin off the FedEx Freight unit into a separate company, creating the largest publicly traded less-than-truckload carrier in North America?
• Splitting FedEx into two entities—FedEx and FedEx Freight—will enhance strategic flexibility while preserving key synergies between operations
• The separation is expected to be finalized within the next 18 months, subject to regulatory approvals and other conditions, including final board of directors approval
• “This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market,” FedEx CEO Raj Subramaniam said. “This announcement is a testament to the strength of the business our team has built, and to our dedication to doing what’s best for our customers, our team members and our stockholders. Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholders”

California trucking company Kal Freight files for Chapter 11 restructuring

• Kal Freight, a major player in the trucking industry, has filed for Chapter 11 bankruptcy protection in the Southern District of Texas
• This strategic move is intended to restructure the company and emerge from bankruptcy as a financially stronger entity
• The company intends to use Chapter 11 to implement operational changes and solidify its financial footing for the future, while maintaining full employee wages and payments to vendors and suppliers for goods and services received after the filing date. It is prioritizing uninterrupted service to customers and trade partners, along with continued employee safety and fleet operations

Earnings Releases

An introduction to ComCap

ComCap is a premier boutique investment bank focused on software and tech-enabled services companies from high-growth verticals, including automotive retail software, B2B SaaS, cybersecurity, e-commerce, FinTech, logistics, digital health, and business services

Headquartered in San Francisco covering North America, LATAM and Asia, and focused EMEA coverage from London and Abu Dhabi, our firm works with mid-cap public companies on buy-side initiatives and public and private growth companies on financing and strategic M&A

We differentiate by:

• Bringing bulge bracket techniques to emerging models;
• Deep understanding of industry drivers and synergy analyses;
• Deep relationships across the sector; and
• Worldwide coverage with closed transactions in the US, Japan, China, the ASEAN region, Western and Eastern Europe and LatAm

For more information, visit comcapllc.com or connect at Get in touch - ComCap (comcapllc.com) to learn about the range of services offered by our seasoned senior bankers and how they can strategically elevate your financial goals