Indianapolis-based third-party logistics provider FitzMark announced Monday the acquisition of the brokerage operations from sister companies Riverside Transport (RTI) and Transco Lines (TLI). With an existing brokerage business in Chattanooga, Tennessee, the acquisition is expected to further bolster FitzMark’s footprint in the market.
Financial terms of the transaction were not disclosed. Middle market private equity firm Calera Capital, which recently acquired a majority interest in FitzMark, supported the transaction.
The deal is FitzMark’s fifth acquisition.
“We are excited to partner with that brokerage team and provide them with the toolsets, capabilities and resources to meet what are rapidly growing shipper and carrier needs,” said Scott Fitzgerald, founder and CEO, FitzMark. “We look forward to building the business together through the shared commitment to customer focus and service excellence.”
The owners of RTI and TLI, Bill Grojean and Terry Wallace, will retain an equity interest in the combined entity. The current president of the operation, Dan Doherty, will continue in his role as head of logistics, reporting to Fitzgerald.
“We expect to re-invest the proceeds to support our rapidly growing trucking operations as we pass the 1,500-truck mark while providing an attractive home for our brokerage team,” said Grojean. “In this long-term collaboration each company can offer the other’s customers best in class supply chain support.”
Based in Kansas City, Kansas, RTI is a national truckload carrier providing over-the-road, regional, local and shuttle service with a fleet of 1,000 power units and 3,500 trailers. The company was founded in 1994 and currently sees more than half of its revenue generated from its dedicated offering.
TLI is a nearly 40-year-old national dry van carrier based out of Russellville, Arkansas, providing dedicated and expedited transportation with its fleet of 500 power units.
FitzMark is a 15-year-old 3PL and provider of transportation management system products to more than 2,000 shippers and 25,000 carriers. The company focuses on brokerage and logistics for the TL, flatbed, refrigerated and less-than-truckload markets.
“We’re excited to grow our footprint while adding a great team that fits our model and culture,” said JD Davis, president, FitzMark South. “On both sides, our customers and carrier partners will immediately benefit from the acquisition.”