Frisco-based Transplace continued its robust growth with the acquisition of another company’s intermodal operations, the company announced earlier this week.
Transplace, a giant of the logistics industry with revenues in excess of $3 billion, will acquire the intermodal marketing company and over-the-road freight brokerage group of Yusen Logistics (Americas) Inc., a subsidiary of Nippon Yusen Kaisha.
The deal will strengthen Transplace’s North American intermodal capabilities as it looks to meet the needs of its customers’ supply chains, which includes interpreting policy changes like the recently announced United States-Mexico-Canada Agreement that could eventually replace NAFTA. Terms of the deal with Yusen were not disclosed.
“Our customers will benefit from the network synergy with Transplace’s current intermodal and over-the-road footprint, resulting in better opportunities for more effective execution of their intermodal shipments as well as mode conversion,” said Frank McGuigan, chief executive officer of Transplace.
Transplace employs more than 2,100 people, and it’s bringing over 150 more employees in this deal, the company said. That includes Yusen locations in Jacksonville, Fl., Cincinnati, Memphis, Chicago and Dallas that will become part of Transplace’s intermodal division, Celtic Intermodal, led by Doug Punzel.
A flourishing economy is contributing to record growth for Transplace. McGuigan told the Dallas Business Journal earlier this year that the company earned about $1.8 billion in revenue last year. More than a year ago, Transplace changed ownership hands from Greenbriar Equity to TPG Capital. After the deal was announced in August, Transplace leadership said the company was gearing up to grow through acquisition.
McGuigan, understands the sensitivity required when acquiring a company. After all, he joined Transplace after the company he ran, SCO Logistics, was acquired by Transplace earlier this decade.
“You can’t underestimate the pure fear that goes through people when somebody comes and buys your company and it upsets the day-to-day operations,” McGuigan told the DBJ in a previous interview. “I think for me that brings an unbelievable sensitivity to companies that we’re buying.”
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