Supply Chain Solutions acquires England Logistics freight forwarding group
July 12, 2013
Earlier this week, Grand Rapids, Michigan-based Supply Chain Solutions (SCS), a global provider of transportation and logistics services, said it has acquired the freight forwarding business of freight brokerage firm and 3PL England Logistics.
Financial terms of the deal were not disclosed.
SCS officials said that through this acquisition the company will in turn become a preferred provider of international forwarding and customs brokerage, adding that it can offer England’s international customers with customs brokerage, international compliance support, supply chain and supply chain technology services.
SCS CEO Les Brand told LM there were multiple drivers behind this transaction.
“SCS has been looking for the right opportunity to access the China market directly to support our current importing, exporting and customs work,” he said. “Purchasing the England Logistics forwarding operations gives us operating residence in Los Angeles, Shanghai, and Ningbo to marry our current operation with these new offices and associate teams. We also will continue to help England support their international client activity, while also gaining a direct link to working with the steamship and airlines.”
As for England, Jim Monkmeyer, England Logistics VP of Supply Chain Management, said in a statement that this sale allows England Logistics to focus on domestic logistics services and also continue to provide its customers with global services.
SCS CEO Brand said that bringing England Logistics into the fold provides several benefits for its customers.
“The enhanced volumes in these key trade lanes will offer additional opportunities to reduce cost and improve service and as we migrate to one global system, [and] all event activity will be updated continuously,” he explained. “Another key activity that is evident is our ability to collaborate on regional consolidations both inbound and outbound, further improving cost, service, and inventory replenishment cycles.”
Prior to this deal, Brand said SCS had been active in the Los Angeles, Shanghai, and Ningbo markets, and had plans to do more in country expansion, noted Brand.
Roughly 20 England Logistics employees will be joining SCS as a result of this deal, and Brand said that SCS would like to maintain the entire current England customer base while expanding their access to SCS’s other support supply chain services.
Brand also noted that another planned SCS acquisition is in the works.
“In addition, with the advent of an addition, acquisition to be announced in the near future the deal with boosting our exporting capabilities, we feel the combination with integration of our technology will lower our cost to serve and increase our global reach,” said Brand.
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