SingPost to acquire TradeGlobal and boost its eCommerce logistics platform to expand and serve brands and consumers globally
SINGAPORE, 15 October 2015 – Singapore Post Limited (“SingPost”) (STI:S08) through its indirect wholly owned subsidiary, TG Acquisition Corporation, is acquiring 96.3 per cent of TradeGlobal Holdings, Inc (“TradeGlobal”), from TradeGlobal Parent LLC, which is owned by the private equity firm, Bregal Sagemount for US$168.6 million (or approximately S$236 million). TradeGlobal is a leading U.S. end-to-end eCommerce provider that offers best-in-class services to the world’s premier fashion, beauty and lifestyle brands.
Following this transaction, SingPost’s clients in Asia Pacific can now expand their businesses into the U.S. Likewise, TradeGlobal’s clients will have access to the fast growing eCommerce landscape in Asia Pacific.
As SingPost’s and TradeGlobal’s eCommerce platforms and warehouse networks are complementary, their clients can expect to leverage integrated technology and fulfilment capabilities. This combination creates a one-stop global solution.
The ability to deliver global scalable solutions will give SingPost a competitive edge in the eCommerce market. Mr. Lim Ho Kee, Chairman of SingPost, said, “Our investment in TradeGlobal makes sense for us in many ways. Together with TradeGlobal, SingPost can establish stronger market leadership and have a larger talent pool to drive a global eCommerce strategy. We will also be looking at a larger and deeper footprint. Increasingly, we need to take a ‘one world’ approach towards eCommerce.”
Mr. Marcelo Wesseler, Chief Executive Officer, SingPost eCommerce, added, “Full service eCommerce solutions have traditionally been geographically confined. This acquisition will offer a one stop solution for brands to grow their businesses globally. Using localised capabilities in the two largest eCommerce markets, Asia Pacific and North America, brands will also be able to provide their customers with a seamless shopping experience. This acquisition strengthens our e-commerce logistics platform by enhancing our scalability and capabilities, for instance to handle major surges in traffic and transactions during peak shopping seasons.”
The founders of TradeGlobal, Mr. Dave Cook, Executive Chairman, and Mr. Dave Eckley, Chief Executive Officer, will continue in their current positions as executives and shareholders.
Mr. Dave Cook, Executive Chairman, TradeGlobal, said, “We are excited about the synergies between TradeGlobal and SingPost. The combination of the two companies will enhance our capabilities to build a powerful global eCommerce platform enabling our customers to expand internationally.”
Mr. Lim added, “We found that both management teams share the same vision and similar values. The focus is on how to best serve clients innovatively and have a common goal of offering best-in-class eCommerce solutions for global brands. TradeGlobal serves more than 60 leading brands with very strong presence in the U.S. SingPost, on the other hand, has built our network extensively across Asia Pacific and Europe. Our acquisition of TradeGlobal will further accelerate SingPost’s transformation, which began more than a decade ago to survive the steep decline of letter mail.”
TradeGlobal is one of the top five end-to-end eCommerce players in the U.S. that offers a full spectrum of eCommerce services from website design, content management, marketing and analytics, to fulfilment and logistics.
Their clients include leading brands in the fashion, beauty and lifestyle markets.
Bregal Sagemount is a growth-focused private capital firm with US$650 million in committed capital. The firm provides flexible capital and strategic assistance to market-leading companies in high-growth sectors across a wide variety of transaction situations. Bregal Sagemount invests US$15 million to US$150 million per transaction into targeted sectors including software, digital infrastructure, healthcare IT/services, business and consumer services, and financial technology/specialty finance.