SEKO Logistics Recapitalizes to Strengthen Financial Foundation Amid Freight Recession

SEKO Logistics announced it has entered into a definitive agreement with its financial partners to recapitalize and reinforce its financial foundation.

The move is expected to enhance SEKO’s ability to invest in its team, network, client solutions, and technology, positioning the company to maintain its leadership in logistics.

The agreement, supported by SEKO’s lenders and equity sponsors, will result in a strengthened financial position, allowing the company to continue expanding its global footprint and service offerings.

The transaction is expected to close in the coming weeks, with the existing leadership team remaining in place.

Proactive Response to Freight Recession

James Gagne, SEKO’s CEO, highlighted the impact of the ongoing freight recession, stating, “By proactively addressing our balance sheet, we will be better equipped to navigate these challenges and provide exceptional value to our clients.”

With new investment, SEKO plans to build on its momentum, capitalize on emerging opportunities, and expand its global reach as the industry recovers. The company’s lenders, including Barings, Blackstone Credit, Churchill Asset Management, and Manulife Investment Management, continue to support SEKO’s strategy.

2021 Recapitalization

In 2021, Ridgemont Equity Partners became SEKO’s majority shareholder through a recapitalization, with Greenbriar Equity Group retaining a significant equity stake. Financing for the deal was provided by the same key lenders involved in the current recapitalization.

Despite the challenges posed by the freight market downturn, SEKO emphasizes that it has not defaulted on debt repayments and remains confident in its long-term strategic direction.