3PL news: Saddle Creek Corporation buys ServiceCraft Logistics
Deal is part of company's strategic growth plan
Jeff Berman, Group News Editor -- Logistics Management, 11/30/2009
LAKELAND, Fla.-Saddle Creek Corporation, a Third-party logistics (3PL) service provider focusing on integrated warehousing, transportation, contract packaging and value-added services, said this week it has acquired Buena Vista, Calif.-based 3PL ServiceCraft Logistics.
Financial terms of the acquisition were not disclosed.
Saddle Creek officials said this deal is reflective of its strategic focus of bringing integrated logistics services to new markets, as well as provide shippers with expanded coverage and service options.
"This is part of our strategic growth plan," said Stephen G. Cook, vice president, marketing and business development at Saddle Creek. "We have an aggressive growth plan, and acquisitions like this assist in that growth. We began targeting Southern California as an area of expansion more than a year ago, and in fact have garnered some dedicated operations for existing customers in this market already, but this acquisition delivers that expansion in a major way.
Cook added that Saddle Creek wants to continue to expand its footprint geographically and across more industries. And he explained that the company views this deal as a great step forward in establishing Saddle Creek as a nationwide provider of 3PL supply chain services.
"We have really grown from the southeastern based grocery warehouse provider to a full network, nationwide provider of integrated logistics and supply chain solutions that include warehousing, transportation and packaging services," he said. "Our customer base has expanded to include much more than grocery business into electronics, retail, health and personal care and a variety of other industries.
ServiceCraft's customer base is comprised of roughly 25 companies, including many Fortune 100 and Fortune 500 ones, according to Cook. ServiceCraft serves multiple sectors of the retail consumer packaged goods industry, including paper products, cleaning supplies, plumbing and health & beauty, and the food and beverage sectors.
In terms of the benefits this deal will offer for its customers, Cook explained that it provides Saddle Creek customers with expanded coverage and service options.
"Many of our existing customers with operations in the West have expressed interest in having us offer service in that region, both the Southern and Northern California markets," he said. "The acquisition is a great complement to our existing network."
This acquisition also adds eight warehouse locations in key markets of Northern and Southern California and Dallas/Fort Worth, and also increases Saddle Creek's total managed square footage by more than 20 percent, according to Saddle Creek officials. They added that through this acquisition the company will now offer regional fleet transportation in the California markets, along with its national transportation brokerage service.
Cook said that nearly all full-time ServiceCraft employees (approximately 250) will join the Saddle Creek team, noting they are a natural fit with Saddle Creek's corporate values and approach to business.
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