Dive Brief:
- Integrated supply chain services provider NFI, based in Cherry Hill, NJ, acquired Connecticut-based United Express on Monday, expanding NFI's brokerage offerings in the Mid-Atlantic and Southeast United States.
- NFI operates 27.5 million square feet of warehouse and distribution space worldwide and a fleet of more than 2,000 tractors and 8,000 trailers. The company records more than $1.1 billion in annual revenue servicing the retail, food, apparel and other industries.
- United Express is a family-owned business specializes in moving nursery stock and grocery products via refrigerated trailers. The company's management will join NFI.
Dive Insight:
Business inventories have steadily risen over the years, and according to a recent analysis by Mergers & Acquisitions the rise would typically indicate a decreased need for third party logistics and transportation services. However, the rise of e-commerce has fueled a shift in expectations as consumers demand faster, low-priced shipping.
As a result, logistics companies have recently become appealing acquisition targets as larger third-party providers seek to expand their market offerings and capabilities. Blue Grace Logistics, for example, recently received a $255 million minority stake investment to help the company expand its nationwide franchise.
"We will continue to look for strategic acquisitions that bolt on new service offerings and expand our footprint," said NFI CEO Sid Brown. "We constantly look to strengthen NFI’s position in the marketplace by creating value for our customers through seamless supply chain solutions.”
