Supply chain buy gives Vitran key U.S. port access

TORONTO — Canada’s largest LTL carrier says it had made its first-ever supply chain acquisition.

Vitran Corp. bought retail supply chain management specialist Las Vegas-L.A. Express, Inc. based in Ontario, Calif. for about $12.6 million in cash. The transaction closed last week.

LVLA adds 470,000 square feet of supply chain logistics space under management, bringing Vitran’s total to 1,240,000 sq ft throughout the U.S. and Canada. LVLA currently operates from six leased facilities. In addition to its Ontario, Calif. headquarters, the company has distribution centers in San Diego and Chino, Las Vegas, Phoenix, and Albuquerque, N.M.

“The accretive acquisition of LVLA, a key addition to Vitran’s growing logistics footprint, is an excellent strategic, geographic and financial fit for our organization,” stated Vitran president and CEO Rick Gaetz.

LVLA’s management expertise and retail-oriented clientele matches Vitran’s logistics focus, added Gaetz. “Vitran Logistics has developed an expertise in the retail supply chain and LVLA’s retail client base augments our initiatives to support and re-engineer North American supply chain requirements. Their California base of operations is very appealing as we focus on developing off-shore opportunities through the Port of L.A. in a similar fashion to our successes on the Canadian West Coast.”

LVLA’s owners Ronald and Michael Adley will stay on to help ensure a smooth integration of their company and 235 employees.

For the trailing 12-month period ended September 30, 2007, LVLA achieved estimated revenues of $25.5 million.