CEO and president James Gagne, chief financial officer Matt Brown and chief technology officer Mike Powell are all leaving the company. The circumstances regarding each departure are unclear, but a Wednesday statement from Seko said Gagne’s exit was his own decision.
The executive shakeup announcement was timed with the closing of a company recapitalization that Seko first unveiled in September. The Wednesday statement elaborated further on that transaction, saying that existing lenders “assumed majority ownership” of the logistics provider.
In the recent announcement, Seko said it secured “significant” new investment from its new ownership group, but did not clarify who the current majority stakeholders are other than referring to “premier global financial institutions.”
Ridgemont Equity Partners led Seko’s first recapitalization in January 2021, which gave the private equity firm a majority ownership over the third-party logistics (3PL) provider before the September reorganization. Another PE firm, former majority stakeholder Greenbriar Equity Group, retained an unknown stake in the Ridgemont deal. Investment management companies Barings, Blackstone Credit, Churchill Asset Management and Manulife Investment Management provided financing for the 2021 transaction.
“We are moving into our next chapter with leadership that will focus on preserving what is so unique about Seko as we continue to invest in our business and strength our market position,” chief commercial offer Brian Bourke told Sourcing Journal.
Sourcing Journal reached out to Gagne.
In September, Gagne told Sourcing Journal that the recapitalization was designed to fortify the 3PL provider’s balance sheet and give the firm a “sizable capital infusion.”
The outgoing CEO said then that Seko did not have a liquidity issue leading to the recapitalization, and said the company was “staunch and confident” that they would be on “very strong financial footing.”
At the time, he said the company instead sought to get out in front of the uncertain macroeconomics of the next two years amid an industry that has already endured in a prolonged freight recession.
The departures of Gagne, Brown and Powell are a 180-degree turn for Seko, which said in its September announcement that existing leadership would remain in place.
Seko appointed Philippe Gilbert to take Gagne’s place in the role as interim CEO and chairman of the board, effective Jan. 1. It is unclear whether Gagne is guiding him on that transition.
Gagne had been a 10-year veteran at Seko Logistics, starting off as chief operating officer of the Asia Pacific region before being promoted to president to kick off 2017. A year later, he was promoted to CEO of the business.
Gilbert served as president of Supply Chain Solutions at UPS from 2019 to 2023, and previously held roles at logistics firms like DB Schenker and at Geodis.
“Seko is entering a dynamic chapter of growth and opportunity,” said Gilbert in a statement. “With a robust foundation, an exceptional team and a clear vision for the future, we are prepared to deliver innovative solutions and exceptional value to our clients. I look forward to collaborating with our talented leadership team, dedicated employees, and financial partners to build on Seko’s proud legacy and capitalize on emerging opportunities in the logistics industry.”
Seko also unveiled three additional C-suite changes, including Brown and Powell’s replacements.
Hans Moller, the chief financial officer of medical credentialing software solution Intellicentrics, will take the same post at Seko. Moller also had roles at freight forwarder DSV Panalpina and container shipping giant Hapag-Lloyd.
Kris Arthur will pull double duty as chief technology officer and chief information security officer, already having been promoted to the latter role in April.
And Mark White, who flanked Gagne as the company’s executive officer from 2019 to 2023 after previously serving as Seko’s chief operating officer and then chief commercial officer, will take on the new role of interim chief information officer.
“We are confident that welcoming experienced executives such as Philippe and Hans, alongside elevating several other long-standing members of our team into expanded roles, will successfully position Seko for stability and growth,” Bourke said. “With these appointments, an infusion of new capital from our new owners and a stronger financial foundation, I am excited to move forward with the right team and resources to continue to meet our customers evolving needs.”
Seko Logistics, which offers logistics services across fulfillment, warehousing, delivery, cross-border shipping, freight forwarding and returns, had planned on leveraging the capital infusion to invest further into its network, technology and employees, Gagne had told Sourcing Journal.
“When it comes to hirings, we have already been out there recruiting for the expansion of our commercial sales force,” Gagne said. “We’re recruiting for technologists, and we’re also looking very carefully into where we can bolster and enhance some of our capabilities in terms of our product offerings around air, ocean and ground, as well as contract logistics, fulfillment and e-commerce.”
The company had been in the center of some controversy earlier this year, as it was the highest-profile logistics business that had been briefly suspended in May from participating in the U.S. Customs & Border Protection (CBP) Entry Type 86 imports program.
Seko filed a complaint with the U.S. Court of International Trade soon after, alleging that the details of their violations were never provided to the logistics provider. The CBP conditionally reinstated Seko into the customs program, but the logistics company still maintained that the agency failed to identify the violations stemming from noncompliance.
