Echo Global Logistics acquires Shipper Direct
July 30, 2012
Echo Global Logistics, a Chicago-area non-asset based freight brokerage and a provider of technology-enabled transportation and supply chain management services, announced last week it has acquired all of the assets of Shipper Direct, a Nashville-based truckload transportation brokerage.
Financial terms were not disclosed, but Echo said that Shipper Direct will immediately become part of Echo.
This follows a June acquisition by Echo of Purple Plum Logistics LLC, a Wakefield, Mass.-based truckload transportation brokerage.
Shipper Direct was established in 1989 by Billy and Angela Suddrath. The company’s primary focus is on non-asset based transportation and truckload services for the southeast and south central regions of the U.S. Echo said that by bringing Shipper Direct into the fold it is able to expand its sales organization and customer and carrier relationships in these regions. The company has hundreds of customers, including several Fortune 100 companies, and it has 12 employees
“We did the deal because we like the owners and they run a good business,” Echo Global Logistics CEO Doug Waggoner told LM. “Their values and work ethic are very similar to ours, and they provide coverage in an area where we didn’t have ‘feet on the street,’” explaining that prior to this deal Echo did not cover or serve these areas with a direct field presence.
He added that Shipper Direct customers will benefit with additional transportation modes and technology that Echo brings to Shipper Direct. Echo customers, he said, will benefit from the strong carrier relationships and local knowledge that Shipper Direct has amassed.
In a previous interview with LM, Waggoner said in regards to the current environment for acquisitions there are a lot of small brokers that are nervous about capacity, and they are finding it more difficult to compete.
“The market is tighter and competition is better, as is technology,” he said. “What we are finding is that these smaller brokers that are having the realization that maybe it is better to be part of something bigger. Ideal candidates are those companies that want to stay in the business and stay involved and keep growing but need more resources.”
On its second quarter earnings call last week, Echo reported total revenue of $185.2 million, which was up 22.3 percent compared to the same period in 2011.
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