GSSA giant World Freight Company (WFC), which owns some of the biggest names in the industry, has been sold in a deal worth a reported $1.2bn.
PAI Partners (PAI) and BPEA Private Equity Fund VI (EQT) yesterday announced that the company had been sold to Brookfield Asset Management.
WFC was formed in 2004 and is one of the world’s largest GSSA groups, owning brands such as Air Logistics Group, ATC, Kales, Wexco and HAE. In total, the group lists around 25 brands on its website.
In total, WFC companies serve more than 300 airlines on 3,500 trade lanes and over 16,000 freight forwarders across more than 80 countries and key international trade routes.
In a press release, Brookfield said it would invest in technology and hoped to benefit from further industry consolidation.
Alex Yang, managing partner, Private Equity, Brookfield, said: “World Freight Company is a high-quality platform operating in a critical segment of the resilient global airfreight ecosystem, supported by long-standing customer relationships.
“With its global scale, local capabilities, and leading market position, WFC is well positioned to benefit from industry consolidation.
“We look forward to supporting the business by applying our operational playbook – investing behind technology and strengthening commercial execution – to support its next phase of growth as a scaled provider of essential services to the air freight industry.”
The private equity firm praised the current management and said that WFC is led by an experienced management team with a consistent track record of growth through both organic growth and M&A integration.
The transaction is subject to customary closing conditions and is expected to be completed by the end of 2026.
The group has been sold before. In 2015, it was purchased by the Greenbriar Equity Group and in 2018 was bought by PAI and Baring Private Equity Asia, which was later merged into EQT, in a deal Reuters reports to have been worth around €600m.
Since then, the company has made several acquisitions as it looked to grow its global presence.
Vikram Singh, group chief executive of WFC, said: “We would like to thank PAI and EQT for their support and partnership over the past several years.
“Together, we have materially strengthened WFC’s platform, expanded our capabilities and continued to invest in innovation and customer service.
“We are excited to partner with Brookfield as we continue executing our growth strategy and supporting our airline and freight-forwarding customers globally.”
Guillaume Leblanc, partner at PAI Partners, said: “During our investment, WFC completed 20 acquisitions and has developed into a truly scaled global platform with differentiated digital and operational capabilities.
“We thank Vikram Singh and the entire WFC team for their partnership and believe the company is well-positioned for continued growth and innovation under Brookfield’s ownership.”
Deutsche Bank is serving as lead financial adviser to PAI, EQT and WFC. Freshfields is legal adviser to EQT.
