Seko responds to market pressure with recapitalisation
20 / 09 / 2024
SEKO Logistics' new Chicago facility
US forwarding and logistics firm Seko Logistics has recapitalised to strengthen its financial position and allow for future investments.
The company said it had successfully entered into a definitive agreement on a transaction with its key financial partners, although it has not outlined the exact details of the refinancing.
The agreement is expected to “reinforce the company’s financial foundation and position it to continue to lead the logistics industry in innovation, excellence, and unmatched client service well into the future”.
It will also allow the company to invest in its team, network, client solutions, and technology.
The transaction is expected to close in the coming weeks and the company’s existing leadership will remain in place.
“With the recapitalisation and scalable go-forward business plan, SEKO will enter an exciting new phase with the financial and strategic foundation to create the future of logistics,” said Seko chief executive James Gagne.
“The ongoing freight recession has impacted the entire market, and by proactively addressing our balance sheet, we will be at the forefront of the industry and better equipped to navigate these challenges and provide exceptional value to our clients and partners around the world.
“With significant new investment, we will build on our momentum to capitalise on emerging opportunities and expand the global reach of our mission-critical service offerings as the industry recovers.”
In 2021, Ridgemont Equity Partners became the firm’s majority shareholder through a recapitalisation that saw previous majority owner Greenbriar Equity Group divest its stake but remain an equity owner.
Financing for the 2021 transaction was provided by Barings, Blackstone Credit, Churchill Asset Management LLC and Manulife Investment Management (fka Hancock Capital).
Seko yesterday said it would continue to benefit from the support of existing financial partners, “who are confident that the company has the right strategy, team, and culture to achieve and exceed its objectives”.
