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DCLI and Blume Global to be acquired by funds managed by affiliates of Apollo Global Management

Investment from Apollo Funds to Enable Company’s Next Phase of Growth

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DCLI and Blume Global to be acquired by funds managed by affiliates of Apollo Global Management
DCLI and Blume Global to be acquired by funds managed by affiliates of Apollo Global Management. Image: Pixabay

Funds managed by affiliates (the “Apollo Funds”) of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) (NYSE: APO) today announced they have entered into a definitive agreement to acquire Direct ChassisLink, Inc. (“DCLI” or “the company”) and Blume Global, Inc. (“Blume Global”) from EQT Infrastructure (“EQT”). As part of the transaction, EQT will retain a 20% minority stake in DCLI and Blume Global. The transaction, which is conditioned on customary regulatory approvals, is expected to close in the second quarter of 2019. Financial terms of the transaction were not disclosed.

Since its launch in 2009, DCLI has grown to become the leading North American provider of domestic and marine chassis to the intermodal supply chain. The company operates an extensive network of approximately 235,000 chassis across more than 450 locations, meaning nearly one in every three containerized shipments in the U.S. uses a DCLI chassis.  Chassis are an essential part of the transportation value chain and are used to carry containers between ships in port and local destinations, as well as to and from intermodal hubs for long haul transport by rail or truck. DCLI’s customers consist primarily of container shipping companies, railroads, motor carriers, beneficial cargo owners, and other logistics companies who use DCLI’s chassis under long-term contracts.

Blume Global has developed a digital supply chain platform leveraging its 25-year history of data-driven insights across its vast global logistics network. Blume solutions enable logistics service providers, asset owners, carriers, and globally recognized brands in retail, manufacturing, healthcare, hi-tech and more, to gain real-time visibility across their supply chains, drive intelligent logistics execution based on data insights, optimize their supply chains end-to-end, manage the lifecycle of assets globally, and automate financial settlement. Since 1994, Blume Global has built a trusted platform in the global supply chain space with its integrated network and data insights across nearly 100 countries, more than 1,400 offices with 300+ IMCs, and 6,000+ motor carriers, and managing approximately 300,000 intermodal assets. The Blume Platform processes approximately $1 billion in transactions for customers with 99.99 percent billing accuracy.

“We are excited to have the support of a world-class financial sponsor like Apollo as we look to grow our asset provisioning business, expand into new adjacencies, and capitalize on the tremendous market opportunity for Blume,” said Bill Shea, CEO of DCLI. “EQT’s vision and backing have allowed us to grow rapidly over the past few years. We are thankful for EQT’s ongoing support and we welcome Apollo to the DCLI family.”

Antoine Munfakh, Partner at Apollo, said, “We are thrilled for the Apollo Funds to acquire what we believe are two incredible platforms in DCLI and Blume Global. Over many years of strong and steady growth, DCLI has established itself as the clear leader in domestic and marine chassis provisioning – a critical component of the intermodal supply chain. In DCLI, the Apollo Funds are acquiring a market leader with scale, breadth, well-established customer relationships, and significant organic and inorganic growth opportunities. In Blume Global, the Apollo Funds are acquiring a high-growth company with unique data advantages that allow it to solve critical problems for its customers, offering better visibility and more efficient supply chain orchestration.  Most importantly, both DCLI and Blume Global are led by exceptional and proven management teams. We are excited to bring Apollo’s resources to bear in helping DCLI and Blume usher in their next wave of growth.”

Barclays PLC served as the financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as the legal advisor to the Apollo Funds in this transaction.

Citigroup Global Markets Inc. served as the financial advisor and Simpson Thacher & Bartlett LLP served as the legal advisor to the Company in this transaction.

About Direct ChassisLink, Inc.
DCLI is the largest provider of marine and domestic container chassis and a leading provider of asset management services to the U.S. intermodal industry. The company owns, leases, and manages over 145,000 marine chassis and 89,000 domestic chassis. DCLI’s strategic partnership with Blume Global (formerly REZ-1), which began in 2014, uniquely positions the company to deliver value to its customers across the supply chain ecosystem via Blume’s Digital Supply Chain Platform. DCLI has a strong focus on safety and sustainability and is a participant in the U.S. Environmental Protection Agency’s (EPA) innovative WasteWise program.

About Blume Global
From the world’s largest global retailers, manufacturers and consumer products companies to the smallest local drayage trucking companies, success depends on end-to-end visibility and orchestration of global supply chain networks across every move, every mode and every mile. With its AI-enabled, data-driven digital platform and solutions for real-time visibility, logistics execution, asset management, optimization and financial settlement, Blume Global leverages 25 years of data insights, its globally connected network, and advanced technologies to help enterprises be more agile and responsive, improve service delivery and reduce costs.

About Apollo Global Management
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo. Apollo had assets under management of approximately $280 billion as of December 31, 2018 in private equity, credit and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources.

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Freight Forwarding

BDP International enters US customs brokerage portfolio

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BDP International enters US customs brokerage portfolio. Image: Pixabay
BDP International enters US customs brokerage portfolio. Image: Pixabay
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BDP International, a leading privately owned global logistics and transportation solutions company has announced the acquisition of DJS International, a Dallas-based customs brokerage and freight forwarding company.

DJS provides customized logistics solutions to a diverse group of more than 800 long-tenured customers across all modes of transportation. As a proven leader in international trade, transportation and customs brokerage services, DJS will readily complement BDP’s diverse portfolio of logistics and global trade management solutions, with trade compliance and inbound logistics as key focus areas.

“The similarities between our two companies are astounding; both built from humble beginnings, family-owned and operated, strong customer relationships, and both expanding in prominence as major global players in the industry,” noted BDP Chairman & CEO, Rich Bolte. “Trade compliance continues to be filled with new complexities and challenges; it’s a major focus area for our customers and therefore it was a natural fit to extend our reach in this area of expertise. We’ve always had a significant presence in the US Gulf region but with DJS we can provide a wider array of specialized and customized solutions for our customers in this new normal world.”

DJS will operate as a subsidiary of BDP, guaranteeing access to BDP’s entire global network and portfolio of services. BDP and its partners will reap the benefits of DJS’s proven position as a leader in trade management. With this new partnership, BDP International and DJS customers can expect a unique service experience backed by a combined century of industry know-how, expertise, and experience.

“Our team at DJS is a family, and we pride ourselves on the notion of delivering service excellence to our customers – we adapt and fit to their ever-changing needs in this complex world,” noted David Meyer, DJS president and chief operating officer. “We wanted to partner with a company who had similar corporate values rooted in delivering service excellence and look forward to working with our 5000 new BDP family members while leveraging BDP’s technology, visibility, and global presence to continue helping our customers streamline and simplify their supply chains.”

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Parcel

NZ Post plans to invest close to $170 million on infrastructure – starting with a new Wellington ‘super’ depot for parcels

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NZ Post plans to invest close to $170 million on infrastructure - starting with a new Wellington ‘super’ depot for parcels. Image: Flickr/ 70_musclecar_RT+6
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The investment programme begins with construction of a new ‘super depot’ for parcels, in Grenada, Wellington. The programme also includes a new processing centre in Wiri, Auckland, due to open in 2023, and an upgrade to the Southern Operations Centre in Christchurch in 2022.

The Wellington super depot is due to open in 2022. NZ Post plans to invest around $18 million in the latest global technology that will sort and scan parcels at a much faster rate than what we have now.

“We know that customers really want complete visibility of where their parcel is at all times of its journey – and this technology will improve our ability to do this,” says NZ Post Chief Executive, David Walsh. “We’re making this multi million dollar investment to support New Zealand businesses – both growing new businesses as well as major ecommerce giants.

“NZ Post is forecasting significant growth in the amount New Zealanders will buy online in the next decade – this was before the explosion in online shopping during the COVID-19 period. Last year online shopping in New Zealand grew 13% with almost 50% of adult New Zealanders now shopping online, and we are expecting this growth to continue. We’re pleased to be able to invest confidently in our future, to meet the growth in online shopping.

“The depot will have a 10440 square metre processing floor – about the size of a rugby field – with plenty of room for processing New Zealanders’ parcels.

“We are proud to be contributing to the Wellington regional economy over the next two years, with the projects main contractors, Aspec Construction Wellington LTD, expecting to employ around 350 people through 60 sub-contractors on this project,” says Ash Pama, the property owners’ representative.

During the COVID lockdown period, NZ Post received over 3.5 million parcels in the first two weeks of Alert Level 3. It had been planning for this quantity of parcels in 2023.

Supporting our commitment to be carbon neutral from 2030, the Wellington super depot will incorporate a range of environmentally sustainable design features and has also been designed to accommodate a large solar power installation once battery technology makes this a viable option for our operation.

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Port of Long Beach sees cargo increase

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Port of Long Beach sees cargo increase. Port of Long Beach
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Cargo shipments rose at the Port of Long Beach in May as the economic effects of COVID-19 started to subside.

Dockworkers and terminal operators moved 628,205 twenty-foot equivalent units of container cargo last month, a 9.5% increase from May 2019. Imports grew 7.6% to 312,590 TEUs, while exports climbed 11.6% to 134,556 TEUs. Empty containers headed back overseas jumped 11.4% to 181,060 TEUs.

The Port has moved 2,830,855 TEUs during the first five months of 2020, 5.9% down from the same period in 2019.

“Our strong numbers reflect the efforts of our Business Recovery Task Force, which is setting the path for efficient cargo movement and growth,” said Mario Cordero, Executive Director of the Port of Long Beach. “Our focus on operational excellence and world-class customer service will continue as we prioritize our industry-leading infrastructure development projects.”

“We aren’t out of the woods, but this is the gradual growth we have anticipated as the United States starts to rebound from the devastating economic impacts of COVID-19 and the trade war with China,” said Long Beach Harbor Commission President Bonnie Lowenthal.

As part of its recovery efforts, the Port of Long Beach has activated an internal Business Recovery Task Force that works with customers, industry partners, labor and government agencies to ensure terminal and supply chain operations continue without disruption, along with expediting shipments of crucial personal protective equipment.

May marked the first month in 2020 that cargo shipments rose at the nation’s second-busiest port, and followed seven consecutive months of declines attributed to the U.S.-China trade dispute and the COVID-19 epidemic.

Manufacturing in China continues to rebound from the effects of COVID-19, while demand for furniture, digital products and home improvement goods is increasing in the United States.

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