Penske Logistics to Buy Epes Transport
Penske Logistics will acquire Epes Transport System, a Greensboro, N.C., dry-van truckload and dedicated contract carriage provider, with more than 1,100 drivers. Terms were not disclosed.
Penske reported in an e-mail it “continues to conduct its due diligence related to the acquisition and expects to close the deal in the next several weeks.”
The acquisition of Epes Transport, a division of Epes Carriers Inc., will enhance its portfolio of transportation and logistics operations and provide growth opportunities, according to Penske.
Penske said it intends to maintain current Epes management and that it would not offer further comment on the deal. The acquisition was announced to Epes employees May 8.
Epes Carriers Inc. ranks No. 81 on the Transport Topics Top 100 list of largest for-hire carriers in North America. It reported net income of $26.3 million on revenue of $401 million for 2017. Its truckload/dedicated group generated revenue of $230.8 million, and its logistics group had revenue of $170.2 million.
Epes has 1,048 company-owned tractors and 6,065 trailers.
Penske Logistics ranks No. 21 on the for-hire TT100 and has 2,704 tractors and 8,785 trailers.
According to its website, Epes operates terminals in Greensboro and Charlotte, N.C.; Rockwall, Texas; Chester, Va.; Morristown, Tenn., and Valdosta, Ga. Its dry-van regional division operates in the Southeast, Southwest, Midwest, Northeast and Texas.
Its dedicated division operates in the Southeast and Gulf Coast states and provides dedicated services including switching/shuttling, store deliveries and yard services.
The purchase does not include the Epes Logistics Services freight brokerage division that reported net revenue of $7 million in 2017, putting it at No. 89 on the Transport Topics list of top freight brokerage firms.
Reading, Pa.-based Penske Logistics had net revenue of $1.7 billion in 2017. Customers include automotive firms BMW, Ford, Nissan and Toyota along with grocer Kroger and consumer products firm Whirlpool. Penske provides supply chain management and logistics services with operations in North and South America, Asia and Europe.
Penske Logistics parent Penske Corp. operates four major divisions — automotive, trucks, transportation and logistics, and manufacturing. It reported revenue of more than $26 billion and operations in more than 3,300 locations. Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing.