RoadLink, the largest private independent intermodal logistics service provider in North America, announced that it has agreed to acquire CP Ships Trucking Ltd. (C-Truck) from Hapag-Lloyd (Canada) Inc., subject to review by Investment Canada.
Upon closing, RoadLink will launch a new alliance with Fastfrate, a leading Canadian supplier of transportation and logistics services, to operate selected locations and further enhance their combined capabilities for customers across North America. 'The acquisition will enhance service capabilities as we deliver single-point-of-contact solutions to complex transportation and warehousing challenges,' commented Chris Munro, RoadLink's President and Chief Executive Officer.
Headquartered in Montreal, C-Truck was acquired as part of Hapag-Lloyd's acquisition of CP Ships. Deciding to concentrate on its core business, Hapag-Lloyd made a strategic business decision to divest C-Truck, which has six locations in Canada and the United States and operates approximately 240 trucks, the majority of which are owner-operators. Through their alliance, RoadLink and Fastfrate will offer their customers one-stop, seamlessly integrated and cost-effective comprehensive transportation services throughout North America, including cross border service. Supported by RoadLink's industry-leading TrueVision technology platform, customers will be able to track their containers from inbound ships through the entire distribution system to the final destination.
According to Munro, RoadLink's acquisition of C-Truck will provide a key strategic opportunity to launch a new alliance with Fastfrate to further extend the offerings of the RoadLink platform into Canada, while enhancing the overall strength and geographical diversification of RoadLink's services. 'The addition of Fastfrate's Canadian-based transportation and logistics capabilities to the expanding RoadLink system further underscores our continuing focus on expanding our business capacity and developing leadership across North America,' said Munro. 'In working with Fastfrate, we're reinforcing our commitment to serve Canada, providing our customers with the highest quality intermodal transportation services across the continent.' Munro further stated that, 'RoadLink's vast United States service platform will become a key strategic service offering for Fastfrate's customer base.'
Aligning the capabilities of RoadLink and Fastfrate makes sense in light of changing North American business dynamics, according to Fastfrate President and Chief Executive Officer Ron Tepper. 'Over the last decade, Fastfrate has created a physical structure across Canada to support the supply chain requirements of some of Canada's largest shippers. Our network combined with RoadLink's United States customer-focused infrastructure will create a unique North American transportation structure for both company's customers. Our new partnership with RoadLink and RoadLink's acquisition of C-Truck is an exciting event in our company's history.'
As the manager of investment funds that own both RoadLink and Fastfrate, Fenway Partners was well positioned to support the two entities in realizing a cooperative business potential.
'Hapag-Lloyd's decision to divest C-Truck presented RoadLink with an opportunity that could not have occurred at a more opportune time as we were looking to increase RoadLink's Canadian/North American footprint. We saw the acquisition, coupled with our knowledge of both portfolio companies, as a way to generate synergies, driving mutually increased business value,' said Marc Kramer, Managing Director at Fenway Partners. John Anderson, Co-Head of the firm's Transportation/Logistics practice, added, 'Today, success is achieved by focusing on customers and their needs. Teaming the capabilities of RoadLink and Fastfrate with this deal will give cu
