GlobalTranz CEO Farrell provides additional perspective on merger with Worldwide Express

Following the announcement late last week that Phoenix-based GlobalTranz, a full-service 3PL focused on freight brokerage and technology, and Dallas-based Worldwide Express, a full-service non-asset-based 3PL focused on small package, truckload and less-than-truckload services (LTL) will join forces to become a merged entity, the top executive for GlobalTranz, CEO Bob Farrell provided with some additional detail on the merger.

Upon completion of this transaction, which is expected to be made official during the third quarter of this year, Farrell will transition to a position on the merged company’s board of directors.

A Q&A between Farrell and Logistics Management Group News Editor Jeff Berman follows below.

LM: What drove the need for this merger? How long had it been planned or in the works?

Farrell: This is a combination that is based on tremendous industrial logic. GlobalTranz and Worldwide Express have been exploring strategic options since 2016. The combined company will have greatly expanded modal offerings in parcel (which GlobalTranz does not have), LTL (our combined LTL spend will dramatically improve our LTL offerings), full truckload (this is not an area of strength for Worldwide that GlobalTranz brings significant capabilities) and managed transportation (not current offered by Worldwide). All of our solutions will continue to be delivered through proprietary technology, augmented by best-in-class off-the-shelf software where appropriate. The combination of our tech resources and IP will drive future innovation. The combined company will also have unique data assets and business intelligence capabilities to provide our customers with visibility and analytics to help our customers create operative and competitive advantages. The new entity will continue to go to market through existing direct and indirect channels. Our agent model isn’t going away – it will be improved by this combination. We will have a diverse customer landscape that spans from small and medium sized businesses (SMB) to larger enterprises.

LM: Have the companies collaborated, or worked together, in the past? If so, when and in what capacity?

Farrell: The companies have not collaborated or worked together in the past.

LM: What are the biggest benefits of this merger for shipper customers of both GlobalTranz and Worldwide Express? What does it provide, or offer, that may have previously been missing?

Farrell: The combined company will have expanded modal capabilities along with advanced technology, visibility and analytics to help our customers create operative and competitive advantages. Our scale will give us increased access to capacity, giving our customers the right equipment at the right time. The merger will provide an increased ability for shippers and carriers to work together.