OrderPro Logistics today, May 30, announced that it has entered into a nonbinding letter of intent with an established West Coast trucking entity. The company, which OrderPro did not identify, is headquartered in the Los Angeles area and has been in operation for more than 14 years. OrderPro says the profitable carrier posts annual revenues of about $2.5 million with its core shipping lanes in and around the Southwest region of the United States.
The unnamed company currently has a fleet of 10 tractors and 25 trailers, and is running loads at full capacity, according to OrderPro. The candidate for the acquisition, terms of which were not announced, specializes in the apparel industry and is primarily transporting freight along routes between California and Texas. OrderPro says it will continue with the due diligence process and inform investors as progress is made.
“OrderPro is moving rapidly with this second acquisition candidate,” says Jeffrey Smuda, chief executive officer of Tucson, Ariz.-based OrderPro Logistics. “Once closed, the company will immediately pursue a strategy for rapid business expansion into international shipping, storage and delivery from the Far East, a long-standing power lane for garments and apparel.”
Smuda says the combination of this strategy, coupled with the unnamed California trucking entity and another letter of intent announced in March 2008, can provide OrderPro Logistics with a solid base of revenue and profit, spread across multiple factions within the supply chain management discipline. “This will provide diversity, yet opportunities to exploit economies of scale and cross business relationships that can be created through our roll-up strategy,” he says.
