Sale of Vitran’s 3PL unit to Legacy Supply Chain Solutions is complete
March 05, 2013
Following last month’s announcement that that planned to sell its Supply Chain Operation (SCO) to Portsmouth New Hampshire-based third-party logistics (3PL) services provider Legacy Supply Chain Solutions, Toronto-based less-than-truckload (LTL) carrier and transportation services provider Vitran Corporation Inc. said yesterday that the deal is now officially complete.
Vitran officials said the purchase price for SCO is $97 million in cash, adding that it has used a portion of the cash to fully reduce its debt under its senior revolving credit facility.
Vitran SCO focuses on complex, high-velocity logistics networks that serve North American-based retailers. Legacy said that this acquisition is expected to significantly expand its market share in the United States and Canada and also expand its total distribution footprint to 35 facilities, four transportation offices, and more than 6 million square feet of warehousing space in North America, coupled with expanding its supply chain presence into the retail sector. Vitran SCO has approximately 1500 employees (full-time/part time) and 20 key clients.
Rick Dempsey, VP marketing director, Legacy Supply Chain Services, told LM in a recent interview that prior to this deal Legacy had been looking for the right opportunity to broaden its supply chain services capabilities.
“Vitran’s SCO culture and values are perfectly aligned with Legacy,” he explained. “Plus, the acquisition allows Legacy to expand into the Large Retailer market—including food and beverage. Overall, the Vitran SCO network is such a great compliment to Legacy’s current supply chain network.”
In terms of the biggest benefits of this deal for Legacy’s customers, Dempsey cited broader supply chain capabilities, specifically expertise of people, enhanced service capabilities, and expanded infrastructure in the form of facilities and technology.
He added that there are no plans for any type of formal business integration, but he did say that the company’s will leverage each other’s strengths.
Vitran officials were not available for comment at press time, but Rick Gaetz, Vitran president and CEO, said in a statement that the company is extremely excited at finding an excellent fit for its SCO business with Legacy Supply Chain.
“Together, SCO and Legacy Supply Chain will become a formidable and diversified supplier for customers requiring North American supply chain solutions,” he noted. “It’s been a pleasure to have worked with our SCO management group and the entire team as we have watched them develop professionally while together building an outstanding business within the Vitran family. There is no doubt they will continue that success with Legacy Supply Chain. We will continue the recovery and growth of our existing business and believe we have positioned Vitran to be a formidable LTL transportation provider in North America. Our LTL team is energized to aggressively develop the Company into the future.”
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