NFI Industries, a sprawling $2 billion transport and logistics company offering dedicated trucking, intermodal, drayage, warehousing, brokerage and distribution services, announced its acquisition of G&P Trucking Company this morning.
G&P, a trucking carrier of 370 tractors and more than 3,000 trailers headquartered in Columbia, South Carolina, operates primarily in the Southeast and offers dedicated, long-haul, regional and Mexico cross-border capacity. G&P also operates drayage fleets at the ports of Savannah, Norfolk and Charleston. G&P's high trailer-to-truck ratio should mesh well with NFI's concentration in dedicated freight.
"G&P is a well-respected, family-owned transportation company with a deep-rooted history, and our shared values of family and integrity create a perfect cultural fit," said Sid Brown, CEO of NFI, in a statement. "Unifying the talents of both NFI and G&P teams, we are excited to bring even greater value to our customers through our robust suite of solutions. Together, our combined footprint will distinguish us as one of the largest dedicated transportation providers in North America."
The financial terms of the deal were not disclosed.
NFI, which is based in Camden, New Jersey, has annual revenues in excess of $2 billion; the company operates more than 3,000 tractors, 12,500 trailers, and approximately 50 million square feet of warehousing space.
This latest deal further consolidates the drayage industry; NFI's most important move in that space came in September 2017 with the acquisition of California Cartage, a family-owned drayage carrier based in Long Beach, California.
Over the past 15 years, NFI has combined organic growth with mergers and acquisitions; G&P is the company's fifth acquisition since 2016. Prior to the CalCartage acquisition, NFI bought United Express, a Connecticut-based freight brokerage, and in January 2017, NFI acquired Dominion Warehousing and Distribution, a Toronto-based warehousing operator with facilities in Vancouver, Calgary and Toronto.
Earlier this year, NFI bought SCR Air Services, a Seattle-based brokerage specializing in temperature-controlled freight. SCR had 200 employees in 14 offices.
NFI has also expanded its investment strategy in recent years. In 2018, NFI participated in an early-stage venture capital round for DeliveryCircle, a mobile app that provides delivery software and drivers for a variety of goods (food, groceries, laundry, freight).
In general, NFI's deals have been geared toward helping the company diversify into growing segments and take advantage of emerging trends. We note that, for example, investments in infrastructure by East Coast ports and congestion on the West Coast has been partially responsible for a shift in container volumes to the East Coast. With the G&P acquisition, NFI should be in position to catch that wave.
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