News
Great Circle Capital Invests in Russian Logistics Sector
STAMFORD, Conn. & MOSCOW-(Business Wire)-July 20, 2007 - Great Circle Capital announced today an investment of US$21.1 million in Moscow-based STS Logistics, a leading Russian freight forwarding, warehousing, and customs services provider with particular expertise in complex movements of oversized and non-standard goods associated with major projects throughout Russia and the CIS. Multinational corporations such as Intel, Komatsu, Ford and Mars rely on STS Logistics for their logistics needs. STS Logistics is the 2004 "Company of the Year - Leader in Transport industry," the 2005 "Best Forwarding Company," and the 2007 third place winner in the top 25 rating of Russian logistics companies provided by KIA-Center, a Russian logistics consulting firm.
"We have been aggressively tracking the logistics sector in Russia and are delighted to team up with one of the leading logistics providers in Russia and the CIS," said Hew Crooks, a Partner with Great Circle Capital. "STS has a chance to take their state-of-the-art logistics business and expand it dramatically. Though their expertise in logistics and freight service is unmatched, they have sometimes lacked the warehouse space to offer their clients a fully integrated solution. We believe they are now poised for tremendous growth."
This marks Great Circle Capital's second investment in the Russian logistics sector. Last year Great Circle invested in Russian Logistic Service - a leading player in FMCG logistics and warehousing.
Proceeds from the Great Circle investment will be used to develop a network of Russian warehouses and well as open new offices to complement its existing 30 offices in Russia and the CIS.
"We needed this investment to realize our aggressive expansion plans," said Rustam Yuldashev, the CEO of STS Logistics. "We are very excited to have teamed up with such a strong and knowledgeable Western investor. This will help us to grow our business and operate at the highest Western standards in terms of corporate governance and transparency. With this investment, we will now be able to create a network of 8-10 modern warehouses for 100 thousand square meters total in Russia, Ukraine and Kazakhstan. As a result of this new investment, we establish ourselves as the only logistics provider in Russia that controls the whole chain of freight delivery: customs clearance, transport and warehousing."
Great Circle Capital LLC is an investment management company specializing in private equity investing in the transportation and infrastructure sector in the emerging markets. Great Circle was founded in 2001 and is based in Stamford, Connecticut, USA. Great Circle Capital and affiliates are the General Partner and Investment Manager of the Great Circle Fund LP.
Please visit our website: www.greatcirclecapital.com.
The Great Circle Fund LP is a $190 million emerging markets private equity fund seeking leveraged buyout and expansion capital opportunities within the global transportation network. The Fund's primary geographic focus is the countries of the former Soviet Union, Southeast Europe and Turkey. The Fund is sponsored by the United States Overseas Private Investment Corporation and managed by Great Circle Capital LLC, based in Stamford, Connecticut, USA. Moscow-based Alfa Capital Partners is the regional manager of the Fund. Probel Capital Management, based in Brussels, is an advisor to the Fund.
STS Logistics is an integrated logistics provider, offering freight transport by air, truck, rail and sea, to/from Russia, CIS and abroad, customs brokerage and warehouse management and services. STS is headquartered in Moscow, Russia and maintains 30 regional offices, including branches in CIS countries, the Netherlands, China, Japan, and the USA, as well as a network of partnerships around the world. The Company employs personnel of over 400.
Please visit our website: www.stslogistics.net.
