Warren’s Universal Logistics Holdings Inc., an asset-light provider of customized transportation and logistics solutions, Friday announced it has acquired Deco Logistics Inc. and Oaktree Logistics Inc., collectively Container Connection. The cash purchase was $60 million.
Focusing on the retail and manufacturing industries, Container Connection has been providing full-service harbor drayage to the ports of Los Angeles and Long Beach, Calif. for more than 25 years.
Container Connection is headquartered in Riverside, Calif. and offers a network of more than 230 independent contractors to customers that are primarily located within the Inland Empire and Central Valley areas. It also offers warehousing, secured parking, and yard space at its 18.5-acre facility.
“Container Connection represents the fourth strategic acquisition we have made in the intermodal space in 2018, and we continue to actively review other strategic acquisition opportunities,” says Jeff Rogers, CEO of Universal.
“Complementing our local drayage service to the ports of L.A. and Long Beach, the acquisition of Container Connection ties together the Inland Empire for a comprehensive Southern California intermodal strategy. I am so very excited to welcome Container Connection to the Universal family of companies. This newest addition provides us and our customers a meaningful presence in one of the largest transportation markets in the world.”
For the year-ended Dec. 31, 2017, Container Connection reported total operating revenue of $55.5 million. It will operate as a subsidiary of Universal Intermodal Inc. The transaction is expected to be immediately accretive.
Global Capital Markets served as exclusive financial adviser to Container Connection. Dykema served as Universal’s legal advisers on the transaction.