CAI International Acquires Logistics Companies for $12 Million
The statement from San Francisco-based CAI said the two companies specialize in flatbed and over-dimensional freight, generating a total of $46 million in revenue last year.
The acquired companies, with 68 employees, will continue to be headed by President Bob Thompson, a co-founder of both businesses.
Based on CAI’s 2015 results, the acquisitions would boost revenue by more than 15% above its $250 million total.
The announcement was the third and fourth acquisition in early June, following Schneider’s acquisition of Watkins & Shepard Trucking as well as Lodeso Inc., and Big G Express’ purchase of Ike Transportation.
“Over the past year, we have advanced our goal of becoming a fully integrated logistics provider,” Victor Garcia, CEO of CAI said. “This transaction doubles our annual logistics revenue, significantly expands our customer base and gives us additional room to leverage and expand our relationships with customers and carriers. We have the capabilities in house to serve our customers’ transportation logistics needs with domestic intermodal transportation, international freight forwarding and now national truck brokerage. Our focus going forward will be to organically expand the reach of each of our businesses and make strategic acquisitions that enhance our overall global platform as a premier logistics provider.”
“Bob has done an exceptional job as a senior executive of the companies and we are confident in his ability to expand our truck brokerage business,” Garcia said. We like the asset light nature of the truck brokerage model and, with expanded access to available trucking lanes, we expect to realize synergies and cross-marketing opportunities with our existing logistics and asset owning businesses.”
CAI’s other businesses are container and railcar leasing and sales, as well as managing those investments for third parties. In addition, the company provides specialized equipment, such reefers, palletwide containers, roll trailers, and swap bodies.
Thompson, in a statement, said,“We held an extensive review of strategic alternatives for our companies to achieve their growth objectives and it was clear to me that joining CAI was the best fit for our companies and employees.”
