H.I.G. Capital, is the culmination of Modern’s fresh capital to expand its burgeoning logistics business in Latin America. H.I.G.’s participation places the firm alongside Rio de Janeiro-based DXA Investments as the two major private equity investor
New York City, Apr 19, 2020 (Issuewire.com) - Modern Logistics Wins $65 Million Investment in Bid for Fresh Capital
Modern Logistics is pleased to announce a $65 million investment in the company, significantly enhancing its capital spending capabilities and corporate expansion across its home country of Brazil.
The convertible-debt investment, led by Miami-based H.I.G. Capital, is the culmination of Modern's months-long search for fresh capital to expand its burgeoning logistics business in Latin America. H.I.G.'s participation places the firm alongside Rio de Janeiro-based DXA Investments as the two major private equity investors with significant positions in Modern Logistics. DXA Investments administered the private placement on behalf of Modern in conjunction with H.I.G.'s guidance. After talking to many potential investors, including transportation-focused private-equity firms, Modern focused on H.I.G. due to its presence in Brazil and alignment with the company's strategy and investment themes. Modern's ability to access this significant investment demonstrates a high level of investor confidence in the Company despite the Coronavirus-induced crisis.
Modern Logistics is a Sâo Paulo-based logistics company that is pursuing a new and different logistics model, becoming the first company of its kind to integrate its own fleet of cargo aircraft and trucks as well as advanced distribution centers across Brazil. Modern's one-stop-shop model is revolutionizing transportation logistics in Brazil by significantly disrupting an antiquated, inefficient and entrenched industry that is reliant on inadequate infrastructure that hinders productivity and increases costs to businesses and consumers. Modern's model, by contrast, creates its own infrastructure to support a superior level of transportation service, which materially cuts costs and shipping times for clients while being more sensitive to customers' logistics needs and requirements.
Gerald Blake Lee, an entrepreneur and business executive with extensive experience in the growth and management of successful start-up ventures, is the Founder and CEO of Modern Logistics, which he incorporated in 2012. Early on, Lee recognized Brazil's extremely limited infrastructure to service the country's growing industrial capacity. He cites the lack of rail transportation, forcing companies to ship manufactured goods, originating in the country's industrial centers, via precarious roads and inefficient river barges. More than simply transporting goods from point A to point B, Modern seeks to connect suppliers directly to consumers, eliminating the intermediaries that are commonplace within much of Brazil's transportation industry. As an example, Lee cites how the combination of Modern's air-cargo and trucking services enables small shing businesses in Brazil's Northeast to sell their product directly to restaurants in São Paulo, nearly 1,500 miles away.
Even as restaurants and other businesses are temporarily closed due to the coronavirus outbreak, Modern continues to operate, as it is considered essential service amid eorts to contain the pandemic.
Following the Company's inception, Lee issued a private placement of approximately US$30 million from DXA Investments as well as substantial financing from US investors. This capital enabled Modern to build its proprietary logistics and infrastructure model, a unique platform that insulates the Company from foreign competition while creating an optimal environment for Lee to pursue his aggressive growth plans. Going forward, H.I.G.'s $65 million infusions into Modern Logistics will firmly support the Company's mission of reducing distances, increasing productivity, creating jobs, and promoting a more efficient and fair country - to the benefit of Modern's investors and its customers.
Copywriter// 2020 - Williamson & Crawford
About Modern Logistics Modern Logistics is the only one-stop-shop logistics player in Brazil. The company has 8 distribution centers, more than 14,000 trucks connected to its network and operates its own air cargo operation, with a current fleet of 4 aircrafts. Modern's approach enables businesses to use its unique platform to create jobs, reduce inefficiencies and create new markets in a U$ 150billion addressable market. www.modern.com.br
About DXA INVESTMENTS is a private equity investment firm founded in 2012 and located in Rio de Janeiro, Brazil. DXA also has offices in Sao Paulo, and New York City, and has a team of professionals which serve its client base of select families, institutions, and wealthy individuals from across the globe. DXA currently manages approximately $200 million in assets for these clients. For more information, visit the website located at www.dxainvestments.com
About H.I.G. Capital H.I.G. is a leading global private equity and alternative assets investment firm with $37 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Rio de Janeiro, São Paulo and Bogotá, H.I.G.
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