Saddle Creek acquires ProLog Logistics

Third-party logistics (3PL) services provider Saddle Creek Corp. said this week it has acquired San Diego-based ProLog Logistics Inc., a provider of warehousing and fulfillment services.

Financial terms of this deal were not disclosed. Company officials said this acquisition, which follows a November 2010 acquisition of ServiceCraft Logistics, is part of Saddle Creek’s strategic growth plans and its commitment to expand its integrated logistics service offerings to shippers.

“The acquisition was driven by strategic plans for growth,” said Stephen Cook, vice president of marketing and business development at Saddle creek. “We are continually seeking out opportunities to add services to our portfolio that will add value for both existing and new customers. With ProLog, specifically, we not only acquired a company but also the expertise that comes along with it.  That proficiency takes us from simply being a 3PL with fulfillment capabilities to being a 3PL with the knowledge, experience and systems to design effective fulfillment solutions that meet customer requirements.”

Established in 1996, Prolog offers order fulfillment, warehousing, ecommerce, call center and customer care services from locations in San Diego and Lexington, Ky., according to Saddle Creeek officials, whom added that the ProLog management team and current employees will remain in place and continue to operate as ProLog Logistics, a wholly owned subsidiary of Saddle Creek Corp. ProLog has approximately 60 employees between their two locations.

Cook said that this deal will provide various benefits for shippers, explaining that by offering in-house fulfillment expertise and call center operations, Saddle Creek takes a link out of the supply chain for any customer currently working with a separate provider to meet these needs. He added that whenever a shipper can further integrate its supply chain, it can realize efficiencies that can improve operational performance. He also noted that the acquisition also adds new locations to the Saddle Creek portfolio in Lexington, Ky. and San Diego while giving Saddle Creek the ability to leverage ProLog’s expertise, personnel and systems at our other campus locations nationwide.

“With this deal, we immediately gain expertise in fulfillment services—a growing market,” said Cook. “It takes us up the learning curve rapidly and gives us an advantage over logistics providers that treat fulfillment as a sideline business.  This will become one of our core service offerings right away. The acquisition also allows us to expand our customer base with a new target market in terms of customer size and service.”

When asked if any future acquisitions are on the horizon for Saddle Creek, Cook said it is always looking for ways to expand both geographically and from a service offering perspective to satisfy the needs of both existing and prospective customers.

“Retaining this effective team will provide continuity for existing customers and allow us to leverage their expertise throughout our operations,” said Cliff Otto, president of Saddle Creek, in a statement. “ProLog’s service offerings and flat organizational structure are a natural complement to those of Saddle Creek. Even more importantly, their customer-driven corporate culture is closely aligned with our company-wide commitment to service excellence.”