Sale of Vitran’s 3PL unit to Legacy Supply Chain Solutions is 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.

By ·

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.”

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!

Article Topics

3PL · LTL · Vitran Corporation · All Topics
Latest Whitepaper
Warehouse Management Systems (WMS) / Inventory Management Technology: 6 Trends for the Modern Age
Here’s how the next generation of warehouse and inventory management systems are evolving to help logistics operations operate more efficiently and improve their bottom lines in our brave, new digital age.
Download Today!
From the March 2018 Logistics Management Magazine Issue
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage to meet evolving requirements and shifting operational constraints? We’ve rounded up insights from leading analysts to share tools that are available now as well as what’s on the horizon.
Reverse Logistics in the “Age of Entitlement”
Logistics Management’s Viewpoint on E-commerce: Leveraging available tools
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Securing IoT data across the connected supply chain
Learn why a holistic approach to IAM is the most effective way to govern access to your systems and information requested by your partners, vendors, customers, and connected devices.
Register Today!
Evolution of E-commerce: The possibilities of tomorrow
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage...
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...

2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...