Supply chain technology provider Trimble Inc. will sell four construction-oriented business units to The Jordan Company (TJC), a private equity firm with a record of buying large logistics providers, saying the move will help it focus on core long-term growth areas and pursue its strategic product roadmap.
Specifically, Sunnyvale, California-based Trimble will sell its Time and Frequency, LOADRITE, Spectra Precision Tools, and SECO accessories businesses to Precisional LLC, an affiliate of TJC. Terms of the deal were not disclosed, but TJC said it plans to roll those units into Precisional, positioning the combined entity to focus on precision measurement and data solutions for the infrastructure building sector.
"The Trimble businesses, which will join Precisional, have a long heritage of innovation, and each is a leader in the markets it serves,” Precisional CEO Drew Ladau said in a release. "I'm excited to build upon this strong foundation alongside the dedicated employees that have served their customers so well over the years. In addition, we plan to accelerate the pace of innovation and growth with the focus of resources and investment on these core businesses supported by TJC."
And that new business is not done growing yet, but plans to continue expanding through future takeovers. "By supporting existing management to make investments in Precisional's operations and product development to integrate precision measurement with data solutions and enhanced connectivity, we intend to accelerate growth opportunities while also pursuing synergistic acquisitions,” Erik Fagan, partner at TJC, said in a release.
The move is the latest investment by TJC, which paid $1.3 billion last year to buy the freight broker and third-party logistics provider (3PL) Echo Global Logistics. That purchase followed acquisitions of freight forwarder AIT Worldwide Logistics, freight brokerage Load Delivered Logistics, and logistics IT provider Logistical Labs.
Trimble has also been busy, in 2020 buying the transportation management system (TMS) vendor Kuebix and combining it with other acquisitions such as shipment tracking software provider 10-4 Systems Inc.
"We are continually evaluating our product portfolio as we work on the execution of Trimble's Connect and Scale 2025 strategy," Rob Painter, president and CEO of Trimble, said in a release today. "Trimble is focusing its efforts on the company's connected industry platforms and digital transformation capabilities, making Precisional and TJC an ideal fit for the growth of the businesses."