Sygnus Acquires 42.2% Stake in B2B Logistics Services Provider CS&T

Sygnus Deneb Investments Limited (SDI) has acquired a 42.2% stake in B2B logistics services provider CS&T.

The private equity investment company said in a Friday (Dec. 16) press release that the investment will help CS&T to continue its strategic expansion and broaden its service offering to the Caribbean and Latin America.

“This investment in CS&T is aligned with SDI’s strategy of providing growth capital in key growth industries, as we continue to expand our regional footprint,” Ike Johnson, chief operating officer, co-founder and head of private equity and mergers and acquisitions (M&A) at Sygnus Group, said in the release.

CS&T provides corporate clients the opportunity to outsource their logistics operations. The firm offers a suite of logistics solutions, positions itself as a fully integrated logistics solutions provider and capitalizes on the growing need for logistics services to facilitate eCommerce, according to the press release.

The company will also be seizing opportunities presented by the fragmented freight forwarding and consolidation market and growth in the global logistics outsourcing market. It also will provide commercial warehouse space in Jamaica, the release said.

“CS&T is a leading regional shipping and logistics business that is poised for significant growth in Central America and the Caribbean,” CS&T Chairman PB Scott said in the release. “We are very excited to partner with Sygnus as we accelerate the growth path of the company over the next few years.”

SDI provides equity and mezzanine capital in key growth industries and targets investments in medium-sized companies with revenue ranging from $5 million to $50 million, according to the press release.

“This investment in CS&T provides exposure to the expanding logistics sector, which is one of the fastest growing sectors in the region,” Stephen Wright, assistant vice president for private equity and M&A at SDI, said in the release. “CS&T’s regional strategy provides an opportunity for diversification of revenue streams.”

As PYMNTS reported Dec. 16, the future of freight, logistics and the supply chain lies with digitization and online platforms.

For example, freight booking and payments firm Freightos said in a filing with the Securities and Exchange Commission (SEC): “Despite its size and importance, global freight has not yet undergone a comprehensive digital transformation. Unlike passenger travel, hotels and retail, cross-border freight services remain largely offline, opaque and inefficient.”