Universal Truckload Services Completes Three Acquisitions
By Rip Watson, Senior Reporter
This article appears in the Jan. 25 print edition of Transport Topics. Click here to subscribe today.
Universal Truckload Services Inc. said it has acquired three companies that offer a variety of transportation services, continuing the company’s plan to grow through acquisitions.
The Warren, Mich.-based company announced the acquisitions on Jan. 15, stating in a news release that the purchases of D. Kratt International Inc., Cavalry Transportation LLC and TSD Transportation LLC were all completed in December. Universal did not announce the price paid or other terms for the companies that offer a range of logistics services from truckload to brokerage.
The purchases by Universal, which ranks No. 39 on the Transport Topics 100 list of the largest U.S. and Canadian for-hire carriers, are expected to add about $35 million to the company’s revenue in 2010. That total represents an increase of about 5%, based on the $759.5 million revenue totaled in 2008.
“We believe these acquisitions will nicely complement our current service offerings and add additional strength in our truckload operations,” said CEO Don Cochran.
Universal’s other businesses include truckload services, including both flatbed and dry van, intermodal and specialized offerings such as heavy haul.
D. Kratt, Chicago, offers international freight forwarding and Customs brokerage, as well as warehousing, domestic and international logistics and insurance-related services, Universal said in its announcement.
Cavalry Transportation and Cavalry Logistics, Nashville, Tenn., offer brokerage and truckload, as well as intermodal and other logistics services.
D. Kratt and Cavalry have become subsidiaries of Universal Truckload.
TSD Transportation of Texarkana, Texas, has a fleet of 200 owner-operators and 30 agents. Its offerings include van, flatbed, step deck, heavy-haul, expedited and intermodal services. TSD will be part of Louisiana Transportation Inc., another Universal subsidiary.
The purchases are not expected to increase earnings until the second half of 2010. Universal did not say how large that increase would be.
Universal’s brokerage business was expanded by five acquisitions between 2005 and 2007 and grew to $208.3 million, or 27%, of the company’s revenue. Brokerage was just $25.7 million of corporate revenue in 2001.
