Clarke Inc. makes a big move down south

In a bid to expand further down the supply chain and position itself as a key player in the U.S. freight management industry, Etobicoke, Ont.-based Clarke Inc. (TSE:CKI) announced today the acquisition of three U.S.-based logistics companies and has agreed to purchase a fourth.

Clarke has just entered into a purchase and sale agreement, scheduled to close February 10, to acquire the assets and operations of Brandywine Consolidators Inc. of Philadelphia, which has annual revenues of $16 million U.S.

Also new to the Clarke family are Memphis, Tenn.-based Focus Carriers LLC (with annual revenues of $23 million US), Kenley trucking Inc., of Atlanta, Ga. (with annual revenues of $10 million US), and Ripon, Calif.-based Creative Logistics (with annual revenues of $7 million US). The new acquisitions will be managed by Clarke Logistics, Clarke’s freight management division, and will report to the division’s president Doug Payne.

Clarke chairman and CEO Roy Rideout said the deal will not affect management or locality at any of the new companies and, with the exception of one small trucking division acquired from Focus Carriers, almost all new assets will come in the form of office equipment and computer systems.

“These companies are a good strategic fit in that we’re interested in becoming more North American in scope rather than (solely) Canadian,” said Rideout, adding that with the acquisition, Clarke Logistics’ revenues will exceed $170 million CDN-over half of which will be generated by domestic U.S. shipments.

Asked how the deal will affect customers, Rideout said, that for now, “it’s business as usual.”

“There will be no immediate impact … But obviously we’ll be seeking ways within the total truck organization for additional services to all of our new customers there,” he said. “We operate divisions that may cater to expedited trucking divisions and we may have intermodal arrangements that may offer additional services to those customers. But that will evolve over time.”