Hg hires Goldman Sachs to prepare sale of Germany's Transporeon - sources

HG Holdings

12/04/2022 15:10

By Emma-Victoria Farr
    LONDON, April 12 (Reuters) - European buyout fund Hg is
working with Goldman Sachs  GS.N  to prepare the sale of
Germany's Transporeon as it seeks to fetch about $2 billion for
the transport logistics software firm, three sources familiar
with the matter told Reuters.
    Hg bought the cloud-based logistics technology specialist in
2019 from rival buyout fund TPG and has seen the firm grow
rapidly since, as supply chains were challenged during the
pandemic, requiring digital software solutions.
    Transporeon is expected to be sold as part of an auction
process that will kick off after the summer, the sources said,
speaking on condition of anonymity.
    EQT  EQTAB.ST , Silver Lake and Warburg Pincus are among
possible bidders for the business, two of the sources said. 
    Hg, Goldman Sachs, EQT and Silver Lake declined to comment.
Warburg Pincus did not immediately respond to requests for
comment.  
    Reuters reported on Feb. 11 that buyout funds including KKR
 KKR.N , Hellman & Friedman and Blackstone  BX.N  had expressed
preliminary interest in the asset, with Permira, Cinven and
Astorg also tipped to take part.  urn:newsml:reuters.com:*:nL1N2UM12Y
    Germany - which has the largest logistics market in Europe
and ranks as the world's third largest exporter and importer of
goods, based on data from Germany Trade & Invest (GTAI) - has
seen a proliferation of freight software providers raising
funds, including Sennder and Forto.
    Transporeon generates around 120 million euros ($130
million) in sales, with core earnings around 35 million euros.
 urn:newsml:reuters.com:*:nL1N2UM12Y
    The company, led by Chief Executive Stephan Sieber, expects
its 2021 revenues to increase beyond the 12.7% growth rate
disclosed in public filings in 2020.
    Transporeon has more than 1,000 employees and uses
cloud-based software to plan logistics and transport management,
reducing empty truck volumes and carbon dioxide consumption.  
    ($1 = 0.9204 euros)

 (Reporting by Emma-Victoria Farr
Editing by Pamela Barbaglia and Mark Potter)
 ((emma-victoria.farr@thomsonreuters.com;))