Transport America announced its acquisition of Birmingham, Ala.-based Southern Cal Transport. Transport America, based in Eagan, Minn., says the purchase creates a company with more than 2,200 drivers, making it one of the top 15 for-hire dry van truckload carriers in the United States.
Transport America says the transaction, terms of which were not disclosed, is being made when many other carriers are moving away from asset-based models, and that the market will need carriers that control their assets and provide quality service. According to the company, customers will see a strong, diverse offering of capabilities, including over–the-road solo, more than 350 teams, dedicated, regional, intermodal, intermodal drayage and brokerage.
“We are very excited about this acquisition,” says Scott Arves, chief executive officer of Transport America. “I believe the Southern Cal and Transport America brands both are known for service excellence and have very similar cultures. I have a tremendous amount of respect for Ken Adams and Phil DeSimone, CEO and president respectively, and for the team of associates they have assembled.”
Arves says the acquisition marries Transport America’s strengths in solo, dedicated, intermodal, brokerage and Mexico/Canada operations with Southern Cal’s strengths in team, intermodal drayage, dedicated, brokerage and regional. “I believe customers will be excited by the breadth and quality of services this company offers,” he says. Arves says that in order to make this transition seamless to customers, the two companies initially will operate independently, preserving relationships, billing and contractual relationships, among other facets.
“When I decided to sell Southern Cal Transport, it was vitally important that the purchaser was aligned with our same set of values, dedication and commitment to customers, drivers and employees,” Adams says. “Transport America is committed to merging our corporate cultures to create a strong new brand known for service excellence. Given the unique products, it also is the best possible outcome for Southern Cal associates who will be integral to the success of the new company. Phil and I look forward to working as part of this new company.”
