In one of the most recent examples of mergers and acquisition activity in the freight transportation and logistics markets, global 3PL GEODIS said this week it has acquired Plano, Texas-based freight brokerage Velocity Freight Transport Inc., a subsidiary of Berkshire Hathaway.
The acquisition was made official on June 30. A purchase price was not disclosed.
GEODIS officials said that bringing Velocity into the fold expands GEODIS’ Capacity Solutions freight brokerage offering in North America at a time when the industry continues to face ongoing driver and truck shortages. And they added that this acquisition will help meet the increased customer demand for more transportation alternatives to ensure their supply chains remain agile and effective.
Velocity’s services portfolio is comprised of freight brokerage services, including : refrigerated and temperature-controlled freight, flatbed and less-than-load (LTL) trucking, intermodal, van, and specialty options. And GEODIS said that Velocity will stay in Plano and expand GEODIS’ operation in the Dallas-Fort Worth metro area, where it currently employs up to 3,500 employees.
Jeff McDermott, Senior Vice President of Transportation Management at GEODIS in Americas, told LM that as the trucking industry continues to experience tightened capacity, due to ongoing issues such as driver and truck shortages, GEODIS is constantly developing solutions that will help meet the increased customer demand for more transportation alternatives.
“GEODIS’ acquisition of Velocity is the most recent example of our commitment to ensuring our customers’ supply chains remain agile and effective as they navigate the challenges of today and best plan for the future,” he said.
As for the benefits of this transaction for GEODIS’ shipper customers, McDermott said that it accelerates the company’s Capacity Solutions offering in North America to provide an even broader range of services.
“Significantly complementing our existing brokerage capabilities, we are welcoming a team of freight brokerage experts who understand the challenges and opportunities of today’s dynamic logistics and supply chain environment and can help our customers best navigate through them,” he said. “Additionally, Velocity’s industry expertise is wide and varied, including food and beverage, industrial construction, retail, oil and gas, and packaging, for both large and small shippers. By combining the strong capabilities, expertise and customer relationships of both GEODIS and Velocity, we are in a position to provide our clients an even greater level of service at a pivotal moment in our industry and beyond.”