Penske Logistics has reached an agreement in principle to acquire Epes Transport Systems, of Greensboro, North Carolina. The deal, expected to be completed in the next few weeks, will add more than 1,200 units to Penske Logistics.
According to a Penske Logistics spokesperson, Penske “views the acquisition as a growth opportunity as the services offered by Epes will enhance its existing portfolio of transportation and logistics solutions.”
Epes employees were told of the pending acquisition on May 8. Terms of the deal were not disclosed. Penske will maintain Epes’ current leadership team, the spokesperson said.
Epes, a regional dry trucking company, traces its history back to 1931 in Blackstone, Virginia. It was family owned for over 55 years before being taken over by a new holding company called Epes Carriers in September 1987, owned by AM Bodford. It is the largest private trucking company in North Carolina, it says on its website.
According to the trade journal, Epes generates $300 million to $400 million in revenue annually for clients such as Proctor & Gamble and Family Dollar.
Epes has operating authority in the 48 contiguous states, operating its regional dry van division primarily in the Southeast, Southwest, Midwest, Northeast and Texas. It also has a dedicated division with more than 50 operations in the Southeast and Gulf Coast. The company operates stations in Charlotte, North Carolina. Rockwall, Texas; Chester, Virginia. Morristown, Tennessee. and Valdosta, Georgia, as well as several delivery yard locations.
Earlier this year, Andy Moses, senior vice president of global products for Penske Logistics, spoke to FreightWaves about the growth of dedicated operations in a limited-capacity, high-rate environment.
“The market is hot,” he added. “You have an improving economy, so you have increasing freight volumes (and therefore) you have limited capacity.”
This limited capacity is also due to a shortage of drivers, and as a result, Penske Logistics is seeing more shippers inquiring about dedicated transportation. Musa explained that customized operations can provide more capacity and price certainty, which is another problem faced by many shipping companies.
“Shipping companies are likely experiencing less reliability in moving cargo from their docks,” he said. “It puts us in a position where a lot of shippers are reaching out to us.”
Penske Logistics is a wholly-owned subsidiary of Penske Truck Leasing with operations in North America, South America, Europe and Asia. The company provides supply chain management and logistics services.
