Brown Trucking acquires West Brothers’ Companies

Metro Atlanta-based dedicated short-haul truckload carrier James Brown Contracting Inc. (Brown Trucking) recently announced it has acquired West Brothers’ Companies, a Durham, N.C.-based provider of transportation, logistics, and leasing of commercial fleet services in the southeast.

By ·

Metro Atlanta-based dedicated short-haul truckload carrier James Brown Contracting Inc. (Brown Trucking) recently announced it has acquired West Brothers’ Companies, a Durham, N.C.-based provider of transportation, logistics, and leasing of commercial fleet services in the southeast.

Financial terms of the deal were not disclosed.

West is comprised of four companies, according to Brown officials:
-a dedicated trucking company, West Brothers Transportation Services Inc.;
-a provider of global freight brokerage services, West Brothers Transportation Services LLC;
-an asset-based full-service truck leasing and maintenance company, Logistics Leasing LLC; and
-a provider of contract warehousing and distribution services, West Logistics Inc.

The majority of West’s customer base is in verticals like paper, construction, machinery, personal care products, consumer packaging, and pharmaceuticals, while Brown said it has traditionally focused on paper and packaging, major appliances, consumer packaged goods, and building materials sectors.

Each West business unit has dozens of customers, and the company is well diversified into several industry verticals, and many customers utilize two or more of the West companies, according to Brown.

Brown said that each group will become a division of Brown Trucking, with Brown acquiring three new business lines in warehousing, contract leasing, and maintenance and brokerage. And through this acquisition, West brings 220 trucks and 600 trailers into Brown’s fleet, which now stands at 810 trucks and 3,500 trailers.

Brown Trucking CEO Brian Kinsey told LM there were multiple reasons behind this acquisition.

“Brown was looking for a company that operated a dedicated trucking business with a different and more diversified customer base,” said Kinsey. “The fact that most of West’s business was within our current footprint offered an opportunity for both companies to improve their asset utilization. Brown was also looking for non-asset based related services that could be integrated with dedicated trucking to provide more value to our customer base.”

Prior to this deal, Brown was not actively engaged in warehousing or contract equipment leasing.  Kinsey said Brown did about half of its vehicle maintenance in-house, and, with the Schrader acquisition this past August, it now has a small brokerage operation based in eastern Tennessee.

In terms of shipper benefits of this deal, Kinsey cited geographic expansion for West into
other markets in the Southeast, “which will give them the high quality of service they are getting in the Carolinas, an integrated logistics offering that includes inbound transportation, warehousing and warehouse management, freight management and brokerage, dedicated transportation, private fleet full-service leasing and contract fleet maintenance.”

He added that upgrades as a result of the acquisition include satellite tracking and
communication in all trucks and trailers, and an upgraded IT infrastructure that will provide periodic reporting on a number of key metrics to help customers run their businesses.

Regarding personnel, Kinsey explained that no layoffs are anticipated as the result of the acquisition, noting that Brown intends to run all four of the business units as separate divisions of Brown, and the employees will remain employees of their respective business unit.

“The two companies have synergies in approach, management style and culture,” said Tommy West, Chairman and co-owner of West, in a statement. “We’re confident this move is the right fit for the future of West and Brown.”


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!

Latest Whitepaper
Managing Global Transportation: How NVOCCs can operate more profitably
Global transportation isn’t getting any easier to manage. With new rules and regulations to learn, new compliance requirements to adhere to, and new customers and business partners to onboard, navigating the complexities of the global market can be difficult for any company. To fully leverage their global supply chains, firms need a robust, global transportation management system that helps them navigate this ever-changing environment.
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo