3PL/M&A news: NFI acquires IPD, expands Canadian footprint

Cherry Hill, New Jersey-based NFI, an asset-based third-party logistics (3PL) services provider, announced this week it has acquired IPD, a global transportation and logistics services provider based in Mississauga, Canada.

By ·

Cherry Hill, New Jersey-based NFI, an asset-based third-party logistics (3PL) services provider, announced this week it has acquired IPD, a global transportation and logistics services provider based in Mississauga, Canada.


Financial terms of the acquisition were not disclosed.

In an interview at this week’s eyefortransport 3PL Summit in Atlanta, NFI CEO Sid Brown provided LM with an overview of the various factors that led to this acquisition.

“We have a small footprint in Canada, and we had secured some pretty nice sized contracts that were getting us to a larger footprint [there] from a warehousing standpoint,” said Brown. “We felt we needed to add to our capabilities from a transport standpoint so this was a good entry point for us in terms of being able to have the capabilities to handle shipments in and out of Canada and within Canada in a much broader capacity than we had previously.”

IPD’s core focus is in perishable-based air and ocean transport, intermodal, and truck brokerage services. It has a large presence in the handling of produce in and out of Canada for s few of the largest grocery chains doing business in the country, with shipments moving into and out of Canada by IPD to South America, Europe, the United States, and Mexico.

Brown explained that perishable transport requires a complex way of moving shipments, which requires a lot of detail. And with IPD providing large grocery chains with an end-to-end solution, Brown said NFI hopes to leverage some of IPD’s strengths which may be applicable for NFI’s U.S.-based grocery partners. Roughly 20-to-25 percent of NFI’s customers are in the grocery industry.

“This gives us a larger footprint into Canada and we hope to build upon that,” said Brown. “They are a non-asset provider, and we hope to maybe put some assets up there as well with some dedicated fleet operations that might complement some of the things their customers are doing—so it is a broadening of services in Canada and hopefully taking some of what they do and bring it here to the U.S.”

Another benefit of this deal cited by Brown is that IPD is a wholesaler of Class I railroad CN and has a strong relationship with the carrier, which will be a boon to NFI’s Intermodal group.

“IPD’s non-asset based transport services, specializing in inbound and cross-border routes, offers a perfect complement to NFI, with its strengths in outbound transport and dedicated fleets, and its widespread distribution and warehousing network,” said IPD President Rob Rusnov in a statement. “Our logistics and transportation brokerage services will further enhance NFI’s already wide range of offerings. Now all of our clients and potential clients on both sides of the border will have access to our combined expertise.”

IPD was represented in this deal by Atlanta-based EVE Partners LLC, a transportation and logistics M&A firm. EVE Managing Partner Tom Connolly noted that this deal presents a powerful combination that will enhance the competitive position of NFI and IPD in the marketplace.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

3PL · Logistics · Transportation · All Topics
Latest Whitepaper
Six Ways Cloud ERP Supports Rapid Innovation
Kenandy is a new approach to ERP that lets you and your team focus on driving innovation, creating new product lines, and expanding your customer base even as you improve your business operations.
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Best Practices: How to Efficiently Leverage APIs to Increase Your Net Income
Both legacy and modern technology leaders agree that leveraging API connectivity is critical in keeping up with the pace of a world that demands not only speed and agility, but also a deep level of visibility. During this session a panel of technology and industry experts discuss impact APIs can have on annual net income and market capitalization.
Register Today!
EDITORS' PICKS
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...

Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...