Transplace acquires SCO Logistics

Non asset-based third-party logistics (3PL) services provider Transplace said today it has acquired Philadelphia-based SCO Logistics, a 3PL serving the chemical industry. Financial terms of the deal were not disclosed.

By ·

Non asset-based third-party logistics (3PL) services provider Transplace said today it has acquired Philadelphia-based SCO Logistics, a 3PL serving the chemical industry.

Financial terms of the deal were not disclosed.

SCO Logistics has roughly 15 customers and about 40 employees. Its primary service offering is a full suite of supply chain technology platform for chemical shippers comprised of software-as-a-service, shipment planning and execution, and transportation management systems, focusing on reducing logistics costs, and improving supply chain visibility.

In an interview with LM, Transplace President and CEO Tom Sanderson explained that since his tenure at the company began in 2003 Transplace has been making an effort to get into the chemical sector with no success.

“We have wanted to get into this space for a number of years, but under our prior ownership we did not have the capital to go out and look at acquisitions,” said Sanderson. “But with our buyout of the former owners in partnership with CI Capital in December 2009, we have the capital now to look into spaces that are attractive that we might want to be in. SCO has a great team, and this is a great opportunity for us to get into a new business.”

When asked how SCO Logistics will mesh with Transplace and what the acquisition will bring to the table, Sanderson said SCO’s strong team and northeast presence will be a boon for the company.

The intent going forward will be to grow and leverage SCO’s Philadelphia presence to continue serving shippers in the chemical industry and the other sectors Transplace serves.

“There is no reason not to have a CPG, retail, or manufacturing customer served out of the Philadelphia office,” said Sanderson. “That would be great for our customers, as all of SCO Logistics employees will become Transplace employees. By no stretch of the imagination are we looking at this as a cost-cutting exercise; this is a revenue growth opportunity.”


SCO Logistics President and CEO Frank McGuigan said that his company has been approached in the past as an acquisition target, but the timing and the immediate comfort level between all parties is what ultimately made this a deal a success. 

He said the “timing” was right all around, with Transplace calling at the right time and SCO having a plus-20 percent growth rate over the last four years. “We were getting to the point where we needed to increase the velocity of our growth. Our Board was considering all options including increased investment when Transplace first reached out to us.

“From a customers’ perspective, they are thrilled about this” said McGuigan. “Transplace is probably the most important player in this [3PL technology services] space and is a great fit. The service offering and customer focused culture are a perfect match. Further, the continued evolution of the needs of our customers will ultimately be better served by Transplace especially in the areas of International Freight Management, Supply Chain Engineering, and Cross-border operations into Mexico.

For related stories, please click here.


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
SaaS Supply Chain Management Systems
A guide to better understanding the market, the software and the benefits
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....