"This new partnership, in combination with our strong cash flow, allows FreightWatch to build upon the significant growth we have experienced in recent years," said Barry Conlon, CEO of FreightWatch International. "The additional capital will allow us to focus on new sectors, expand our current client base, and invest in new covert asset tagging technologies."
FreightWatch says the security solutions industry has been growing, with the rise of global cargo theft of high-value goods.
"Supply chain security is not only an issue of corporate security, but it is also increasingly seen as a consumer safety issue, especially with stolen and counterfeit pharmaceuticals," said Jeremy Kroll, an investor in FreightWatch and president of K2 Global Partners, a risk consultancy and investigations firm based in New York. "Ultimately, insurance carriers will require more companies to reduce loss from cargo theft."
FreightWatch offers supply chain security solutions designed to prevent cargo theft within the pharmaceutical, electronics and other consumer-focused industries.
Houston-based Growth Capital Partners served as the exclusive financial advisor for FreightWatch on the transaction.